New Bankruptcy Legislation

[MissSunshine]

I was watching Nightline on ABC lastnight and they were talking about the new legislation that just passed Congress that would make it tough for normal, every day citizens to qualify for Chapter 7 bankruptcy protection. Seems that the new legislation is posed to protect big businesses and credit card companies from financial losses from consumers who go bankrupt. Normal people, who fall into debt because of some financial hardship, would find a hard time getting some relief under the new law.

Being a person who has had to file bankruptcy, I find this new bill a little hard to swallow. There are people in this world, who for some reason or another, fall into hardships and have a problem paying off enormous debt. I was one of them. My debt equalled my yearly income, therefore, it was best to erase all debts. I just wonder, if I had waited a little while longer, I might not have been so lucky.

What do you all think of this new legislation?? Sounds like a part of Dubya's MANY promises he made to big businesses during his campaign.

The bill hasn't made it across Dubya's desk yet, but, it is almost guaranteed he will sign it into legislation.

What do you all think??

[Rain Man]

Miss Sunshine, very good question!

Since no one has replied, I will!

Having also filed bankruptcy a few years back, I do feel that this is more to protect creditors than it is to relieve debtors. To me it sounds like this new bankruptcy reform will be tantamount to "legal Consumer Credit Counseling". While I want to read the details on this new reform, I don't know the specifics of it just yet, though I know about the bills Congress was/just now passed a few years back.

As far as credit card companies, etc., it should be illegal for them to solicit credit cards by doing unsolicited credit checks. This should include going to colleges and setting up booths, etc. I say, if you give credit to immature adults, you should understand the costs involved. Besides, the high APR and interest offsets the losses on credit card debt anyway.

AFAIC, aside from my mortgage and student loans (undischargable), and the fact that I can't file again for another 3 years, I have no real debt, and therefore no real reason to file.

I'm rambling. My .25 cents
RM

[Discogoddess]

I've worked for community groups and for a financial services company, so I see both sides of the issue. Personally, I feel that we need to do a better job of educating our young people about debt and that despite the ease of getting it, it is not always so easy to keep it up (and pay your debts). I don't understand why running up debt, even debt/credit that was "thrown" in one's lap, is seen as everybody but the individual's fault (the credit card company, Congress, etc.).

Secondly, I believe that spiritually (on a karmic level), we should pay back what we owe, no matter how long it takes. Of course, there should be legal protections (and consequences) in place for when calamity strikes, but individuals should be making sure they are personally insured, have savings and other protections that can help them before having to resort to bankruptcy.

As for this legislation, I think it should serve as a wake-up call to those of us who amass debt without a plan to pay it back and/or means to keep up afloat in a medical emergency, death or loss of employment. Once upon a time, we (as a society) used to rely on our savings to get us through such things, as well as to pay for the things we wanted. In short, we need to buck up and teach our kids not to mess up when it comes to credit (that isht ain't no joke-I've got the scars to tell my own story!).

*This is only my viewpoint, not meant as a slight against anyone who has made the decision to file bankruptcy.*