A BK reform bill to be reviewed tomorrow

[GWBcasualty]

That should make it easier to file BK.

http://www.marketwatch.com/news/story/bankruptcy-reform-may-have-backfired/story.aspx?guid=%7B3D1B6878-927E-4E2A-8EFD-CAD715AC8EF8%7D&dist=msr_1

Anyone heard of this??

[GWBcasualty]

A long article about it.

http://www.usatoday.com/money/economy/2009-03-22-reform-filings-bankruptcy_N.htm?csp=34

[lclounge]

Very Interesting!

This is the first I'd heard. Too bad I don't have time to wait for "them" to "fix" it. Thanks for the info!

[keepmine]

[momxx5]

Oh can we all collectively pray that the powers that be (Congress, et al) will hear our cries.

All we want is to be treated fairly and then we would not be put into such situations.

We were able to carry our debt and lifestyle for 20+ yrs until the unfortunate happened. Then one late payment turns into 26% interest, in turn causing other cards to follow and before you know it your min payments are through the roof and the whole house comes tumbling down.

I believe if I took our balance of charges made on a card and all the payments made over time that we have paid the charged balance and hefty interest and are still owing balances. The credit card companies are really going to find out that they have put themselves into this situation. I guess they are already realizing it because so many are so quick to offer settlements.

I wish the debt forgiveness tax would also be looked at. Maybe there would be less BK filings if people where able to work with the cc companies without having to worry about taxes, etc.

[floridian]

a glimmer of hope!

[LuciluS]

I knew there was some reason why I didn't want my Attorney to start our Chapter 7 in Dec. 2008. Now, there are Many Reasons. 1. being we would most likely have been pushed into a Chapter 13 as I was receiving my ex-husband's 401k (turned into a QDRO) over a 10 yr plan. (ended 2/09, so that $1141.45 a month will drop off), I am 100% disabled and receive SSD (Attorney never said anything about the gross, or for that fact that husband's gross not Net would be used in Means Test) being used in determining expenses). and was dx with Skin Cancer in Feb. 2009.

I went into his office with Excel Spreadsheets out the wazoo. Took him about 10 minutes and said Yes, you qualify for a Chapter 7. At the time, he was Dead Wrong! and wanted to file Dec. 2008.

I am now 'Planning' our Chapter 7 for filing in Sept. 2009 IF I am free of cancer. Only worry is stopped paying credit cards in Sept. 2009.

Luci

[HHM]

I honestly would not hold out any hope for this. As far as over all priorities, a fundamental overhaul of the BK system is not even on the radar.

[momxx5]

HHM,

Thanks for your input. We will be filing by the end of the month and the thought that any reform would help was making me question our decision.

I guess we will go ahead and file.

(If there is reform it probably won't come quick enough for us, but I'd hate to miss an opportunity to avoid BK or somehow make it easier.)

[GWBcasualty]

They are talking

http://online.wsj.com/article/SB123791184773426601.html

[GWBcasualty]

This would be good

http://www.google.com/hostednews/ap/article/ALeqM5gWsnTUA4iJxSIxPGz5mi1h9LcNowD974GBQG0

I guess what it means is that CC debts with interest rates higher than 18% would be not have to be repaid EVEN if you are a Ch 13 case and would be discharged more swiftly in a Ch 7.

[OhioFiler]

http://www.google.com/hostednews/ap/...LcNowD974GBQG0

I guess what it means is that CC debts with interest rates higher than 18% would be not have to be repaid EVEN if you are a Ch 13 case and would be discharged more swiftly in a Ch 7.

So basically Congress is trying to cap interest rates at 18.49%.

[GWBcasualty]

So basically Congress is trying to cap interest rates at 18.49%.

That could be a consequence... what they are proposing is that a creditor that charges more than 18.49% loses all claims toward that debt in bankruptcy.

[OhioFiler]

That could be a consequence... what they are proposing is that a creditor that charges more than 18.49% loses all claims toward that debt in bankruptcy.

So the banks say "Fine, we'll just charge everyone 18.49% regardless of creditworthiness since we can't charge high risk customers any more than that we can't afford to charge low risk customers 5.99%."

[GWBcasualty]

So the banks say "Fine, we'll just charge everyone 18.49% regardless of creditworthiness since we can't charge high risk customers any more than that we can't afford to charge low risk customers 5.99%."

A low risk customer will find in the free market someone that will lend him money at a lower rate... especially now that banks are borrowing at 0% from the Fed.

In the mean time we finally put a stop to legalized usury.

I fail to see what is bad about this scenario.