DISQUS

thc · 4 years ago

The fact that there was such a surge in last-minute filings is evidence that bankruptcy was being abused. Reform was long overdue.

Flexo · 4 years ago

And I'd imagine, since half of all bankruptcies are filed by individuals who have found themselves incapable of paying illness and emergency medical bills [source: news and study] that half of those last-minute filers were worried that once the law were to go into effect, it would be more difficult (and more expensive) to file.

Sure, there's abuse of bankruptcy, but it's on both sides... by creditors and debtors...

Neo · 4 years ago

While having some type of bankruptcy protection is definitely needed for those that truly aren't able to get out of the problem they have created for themselves. The real problem is the misuse by those people that have no intention of changing their habits, so instead of learning the first time, they get themselves right back into the debt. Then again, why are creditors approving these high risk people?

Neo

Jonathan · 4 years ago

Like the new header. Looks very futuristic =)

mbhunter · 4 years ago

I really have very little sympathy for the credit card companies on this one. People who had no business getting credit were getting cards.

JLP at AllThingsFinancial · 4 years ago

I think BOTH the debtors and creditors are to blame for the problem of bankruptcy. If creditors would exercise some moderation and wisdom in granting credit, people who don't need credit wouldn't get it. However, I'm sure the threat of a lawsuit for not issuing credit was also on the creditors' minds.

It all boils down to personal responsibiliity.

jim · 4 years ago

I agree that both sides are to blame and I have sympathy for neither side. Creditors hire actuaries who run the numbers and they know where they can make money, they won't give you a card if they don't think you can pay - just ask someone with bad credit if they can get an unsecured card. Creditor card companies earn billions and they know that each new customer is worth X dollars (look at all the offers they have!).

On the flip side, if you can't demonstrate financial restraint and put yourself in a bad position - I'm sorry, get yourself out. Read NCN's blog (and alot of blogs out there) and see that responsible people who make mistakes will work hard to rectify them.