The congress has passed, or is in the process of passing, a new law regarding bankruptcy. It will be more difficult for the average debtor to get a fresh start if he can't service his debt. Would someone share with us how this might affect folks' ability to recover from the economic hardtimes that may lie ahead? Is it a coincidence that this legislation is being rushed through in 1999 or is this being done in anticipation of a flood of people with credit problems materializing in the near future? Has the President signed this legislation yet? Does the President intend to sign this legislation? If you are out of work next year and have debt then who will "feel your pain" when you seek the same kind of relief that broke corportations will get - that being to forfeit your assets and start anew without the debt? If consumers will be required to continue to pay old debts after bankruptcy and liquidation then will the same requirement be made of the stockholders of defunct corporations? Is this the first step toward an eventual return to debtors' prisons? Since defaults are figured into the interest rates of loans and credit cards is it accurate to assume that creditors will receive something of a windfall if the new law reduces the defaults that were paid for in advance within the interest payments of all their customers?

-- Strong S. Type (SST@curious.lurker), June 23, 1999

Answers

Strong, the bankruptcy reform bill failed to pass last year because it could not be reconciled between house and senate versions. I have not heard about a new one being considered now. Credit card issuers have been reaping the whirlwind in bankruptcies because they aggressively hawk credit cards to the uncreditworthy: students, indigent old folks, and welfare queens. The greedy buzzards deserve it. Just wait and see what they get in about six months!

-- doktorbob (downsouth@dixie.com), June 23, 1999.

Several factors at work; y2k is not one of them. Doktor Bob nailed one factor. Add abusive filings by some debtors intent on unfairly manipulating the system. Also add the general increasing dominance of government by big business. Any version of the new law will have no application to the very large majority of filings.

-- P (d@d.d), June 23, 1999.

I have found that the typical debtor in bankruptcy has (either and) lost a job for a period of time, been in a divorce situation, or had a medical emergency with no insurance(or not enough). The great majority of people don't have any "fun" on their debts... generally it is a result of bad luck that pushes them over the edge. I've never met anyone that actually planned on bankruptcy. People are usually too optomistic(sp) concerning how much it really does cost to live in the lifestyle they want....probably thousands of reasons for that view.

-- jeanne (jeanne@hurry.now), June 23, 1999.

Acquire the guts to call your Congressman/Woman and both of your State Senators. Take names and take notes. Put them on the "pin." Give them your phone number and DEMAND a call back. Better yet, tell them you are willing to wait on hold until you are able to speak with someone who can give you the answers you ask for. Talk to that person at length. Demand answers. Your tax dollars pay for them.

Post what you found out.

-- YOU (are@the.government), June 23, 1999.