U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Politics and Other Controversies
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 10-08-2011, 11:13 AM
 
12,439 posts, read 10,039,386 times
Reputation: 3133

Advertisements

Under George Bush, the Bankruptcy laws were reworked to make it much harder to declare Bankruptcy. The big banks knew what was coming so they used their lobbyist to get Bankruptcy laws changed to make it harder to declare bankruptcy.

If we put the laws back to pre George Bush, it would be easier to declare bankruptcy and recently graduated students and home owners would be able to get out from under terrible loans and financial problems.

Now for all of you people that say that these people should have lived within there means, if they declare bankruptcy then they will have to live within in their means. At least for the next 7 years, they will not be able to get any credit because of the bankruptcy, but they will have more money to spend because they will not have to pay any interest payments.

Thoughts.
Reply With Quote Quick reply to this message

 
Old 10-08-2011, 11:24 AM
 
Location: Atlanta metro
5,645 posts, read 4,012,383 times
Reputation: 982
It's not that hard to file if you truly cannot meet your obligations. What was different pre-Bush?
Reply With Quote Quick reply to this message
 
Old 10-08-2011, 11:25 AM
 
10,589 posts, read 5,534,899 times
Reputation: 3221
I agree, bankruptcy laws should be changed...EVERYONE should be held accountable for their obligations, individuals and corporations. No more excuses, just pay what you owe or dont borrow it.
Reply With Quote Quick reply to this message
 
Old 10-08-2011, 11:34 AM
 
12,439 posts, read 10,039,386 times
Reputation: 3133
Quote:
Originally Posted by andrea3821 View Post
It's not that hard to file if you truly cannot meet your obligations. What was different pre-Bush?
The difference in a nutshell is cost. Most people are going to need to hire an attorney to file a bankruptcy. The attorney costs for doing a bankruptcy is nearly twice as high than before 2005. The reason is because there is so much more for attorneys to comply with under the new laws.

Furthermore, most could file under chapter 7 before, which meant liquidation of assets and forgiveness of debt. Now there is means testing, and many have to file under chapter 13, which does not forgive the debt.

Add to that the requirement of credit counseling, which is an additional cost. People with no money have a hard time coming up with money to pay the attorney's cost and then they are still stuck with debt under chapter 13.
Reply With Quote Quick reply to this message
 
Old 10-08-2011, 11:35 AM
 
12,439 posts, read 10,039,386 times
Reputation: 3133
Quote:
Originally Posted by t206 View Post
I agree, bankruptcy laws should be changed...EVERYONE should be held accountable for their obligations, individuals and corporations. No more excuses, just pay what you owe or dont borrow it.
Let me guess. You would be in favor of debtor prisons?
Reply With Quote Quick reply to this message
 
Old 10-08-2011, 11:38 AM
 
10,589 posts, read 5,534,899 times
Reputation: 3221
Quote:
Originally Posted by hotair2 View Post
Let me guess. You would be in favor of debtor prisons?
Let me guess, you like to jump to extreme illogical conclusions?
Reply With Quote Quick reply to this message
 
Old 10-08-2011, 11:41 AM
 
12,439 posts, read 10,039,386 times
Reputation: 3133
Quote:
Originally Posted by t206 View Post
Let me guess, you like to jump to extreme illogical conclusions?
Well what you like to see happen when a person can't pay their mortgage because they now have cancer and are unable to work, nor can they pay their medical bills because they are unable to work, and the debt collectors are calling them everyday as they sit their recovering from their chemo treatments.

What is your answer for that?
Reply With Quote Quick reply to this message
 
Old 10-08-2011, 11:44 AM
 
10,589 posts, read 5,534,899 times
Reputation: 3221
Quote:
Originally Posted by hotair2 View Post
Well what you like to see happen when a person can't pay their mortgage because they now have cancer and are unable to work, nor can they pay their medical bills because they are unable to work, and the debt collectors are calling them everyday as they sit their recovering from their chemo treatments.

What is your answer for that?
For extreme cases, sure have some solution that involves bankruptcy, but bankruptcy seems to become the easy way out for too many people. Just wash away the bad decisions, wait 7 years and start over. I know of 3 people that have filled for bankruptcy multiple times...its ridiculous.
Reply With Quote Quick reply to this message
 
Old 10-08-2011, 11:51 AM
 
12,439 posts, read 10,039,386 times
Reputation: 3133
Quote:
Originally Posted by t206 View Post
For extreme cases, sure have some solution that involves bankruptcy, but bankruptcy seems to become the easy way out for too many people. Just wash away the bad decisions, wait 7 years and start over. I know of 3 people that have filled for bankruptcy multiple times...its ridiculous.
Bankruptcy is for extreme cases. When your income is far exceeded by your debt. That is an extreme, most people do not want to go into backruptcy and basically ruin their credit for the next 7 years, and have to liquidate everything that they own.

As for your anecdotal evidence of 3 people who have filed bankruptcy multiple times, I have my doubts about the veracity of the statement, but lets assume for the moment that it is true. If the banks and lenders, lend money to someone with multiple bankruptcies, I would say the banks are to blame for that. Of course, if you can always get the govt. to bail you out for bad loans, there is no risk to the banks. It used to be lending money implied risk, you charged interest based on that risk, but now the banks get the interest and no risk at all, because our elected officials will bail them out. Pretty sweet deal for the banks.

In your prior post, you posted "EVERYONE should be held accountable for their obligations".I am glad that you are now seeing that bankruptcy is needed in at least some instances.
Reply With Quote Quick reply to this message
 
Old 10-08-2011, 11:57 AM
 
10,589 posts, read 5,534,899 times
Reputation: 3221
Quote:
Originally Posted by hotair2 View Post
Bankruptcy is for extreme cases. When your income is far exceeded by your debt. That is an extreme, most people do not want to go into backruptcy and basically ruin their credit for the next 7 years, and have to liquidate everything that they own.

As for your anecdotal evidence of 3 people who have filed bankruptcy multiple times, I have my doubts about the veracity of the statement, but lets assume for the moment that it is true. If the banks and lenders, lend money to someone with multiple bankruptcies, I would say the banks are to blame for that. Of course, if you can always get the govt. to bail you out for bad loans, there is no risk to the banks. It used to be lending money implied risk, you charged interest based on that risk, but now the banks get the interest and no risk at all, because our elected officials will bail them out. Pretty sweet deal for the banks.

In your prior post, you posted "EVERYONE should be held accountable for their obligations".I am glad that you are now seeing that bankruptcy is needed in at least some instances.
Call me a liar all you want, it doesn't change the problem. Too many people use bankruptcy as the easy way out. I literally over heard one of those 3 people on the phone with their lawyer one day say "well its just easier to do it this way and wait it out."

Like I said, individuals and corporations should be held accountable.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Politics and Other Controversies
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top