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Author Topic: Bankruptcy "reform" backfires on US banks
Doug
rabble-rouser
Babbler # 44

posted 08 November 2007 03:48 PM      Profile for Doug   Author's Homepage     Send New Private Message      Edit/Delete Post  Reply With Quote 
quote:
Washington Mutual Inc. got what it wanted in 2005: A revised bankruptcy code that no longer lets people walk away from credit card bills.

The largest U.S. savings and loan didn't count on a housing recession. The new bankruptcy laws are helping drive foreclosures to a record as homeowners default on mortgages and struggle to pay credit card debts that might have been wiped out under the old code, said Jay Westbrook, a professor of business law at the University of Texas Law School in Austin and a former adviser to the International Monetary Fund and the World Bank.


http://bloomberg.com/apps/news?pid=20601109&sid=ar909uO1CqHw&refer=home

I love irony.


From: Toronto, Canada | Registered: Apr 2001  |  IP: Logged
B.L. Zeebub LLD
rabble-rouser
Babbler # 6914

posted 09 November 2007 01:28 AM      Profile for B.L. Zeebub LLD     Send New Private Message      Edit/Delete Post  Reply With Quote 
Heh.
From: A Devil of an Advocate | Registered: Sep 2004  |  IP: Logged
Michelle
Moderator
Babbler # 560

posted 09 November 2007 06:23 AM      Profile for Michelle   Author's Homepage     Send New Private Message      Edit/Delete Post  Reply With Quote 
Ha ha.

I've never understood this, personally. What do they do, in that case, if people can't pay their credit card bills? I mean, whether they declare bankruptcy or not, they're still not going to be able to pay the bills. So what do they get out of it by not allowing people to go bankrupt, if they have no money to pay? Garnish their wages to the point where they have no money to live?

If a bank did that to me, I'd quit my job. I wouldn't bust my ass working for no paycheque.


From: I've got a fever, and the only prescription is more cowbell. | Registered: May 2001  |  IP: Logged
Bacchus
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Babbler # 4722

posted 09 November 2007 10:02 AM      Profile for Bacchus     Send New Private Message      Edit/Delete Post  Reply With Quote 
quote:
If a bank did that to me, I'd quit my job. I wouldn't bust my ass working for no paycheque.

And live on what? In the states, welfare availability varies and in most jurisdictions they will garnishee a portion of your welfare payment for debts such as this, regardless of what that does to your survival. And even here you cant use bankruptcy to get out of student debt for example.


From: n/a | Registered: Dec 2003  |  IP: Logged
Michelle
Moderator
Babbler # 560

posted 09 November 2007 10:06 AM      Profile for Michelle   Author's Homepage     Send New Private Message      Edit/Delete Post  Reply With Quote 
Oh, I know.

I guess I just wonder what bankruptcy is supposed to be for, if you can't use it to dig yourself out of unmanageable debt. Credit card debt often happens BECAUSE there is no social safety net to speak of, so if someone loses their job or has a huge legal bill (or in the US, a huge medical bill) to pay, you end up using credit cards if you have them.

It can, and does, happen to anyone.


From: I've got a fever, and the only prescription is more cowbell. | Registered: May 2001  |  IP: Logged
Bacchus
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Babbler # 4722

posted 09 November 2007 10:09 AM      Profile for Bacchus     Send New Private Message      Edit/Delete Post  Reply With Quote 
yup been there, done that. And hoping the inheritance Im expecting will wipe out that credit card debt for me at least. And I know of others that went under over it
From: n/a | Registered: Dec 2003  |  IP: Logged
kropotkin1951
rabble-rouser
Babbler # 2732

posted 09 November 2007 10:51 AM      Profile for kropotkin1951   Author's Homepage     Send New Private Message      Edit/Delete Post  Reply With Quote 
Canada seems to reserve this type of draconian economic hammer for students. At least someone is trying to modify it.

Student Loans

quote:
The Bill, if enacted, will amend the student loan provisions, ss. 178(1)(g) and (1.1), so as to provide for:
a non-dischargeability period of two years from the end of studies (reduced from the current ten years).
the mercy, or hardship, hearing (in which the court may discharge a student loan despite the bankruptcy having been filed during the non-dischargeability period) may take place at any time, rather than, as at present, only after the expiration of the non-dischargeability period; and
the court may, at the mercy hearing, fix payment terms and conditions for the student loan, and may discharge part of the debt (rather than all or nothing, as under current jurisprudence:


From: North of Manifest Destiny | Registered: Jun 2002  |  IP: Logged

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