When the fed. government passed the law to making Bankruptcy more difficult was there anything in it for us?

Question

The purpose of the bill was to keep people from walking out on their bills, because the credit card companies were getting hurt. Was there anything in the bill that helped the consumers, such as a structured reduction in interest rates over time since the credit card companies wouldn't be hurting as much. Or other things that help people who have lost their jobs?

Answer 1

Well, for one it keeps people from entering into bankruptcy when they don't really have to and just need to excerise some self control. Bankruptcy is a lengthy and stressful process which affects you for years afterward.

Plus, it also helps small businesses who maintain small accounts, like independant contractors, courier companies who serve sole-propriotorships, personal accountants, etc. It isn't only credit card companies who get the short end of the stick when someone claims bankruptcy.

I think credit card companies should make it harder to get credit if it is so bad for them.

Answer 2

The credit card companies hold all the cards thanks to the administrations agenda of always bowing to big business, that is why the banks had laws passed in my state against payday loan companies even though they were charging high interest rates on these loans and the banks said it hurt the poor it was really dipping into their profits cause there were less returned checks and less fees for them to collect, the same way the credit card companies do they send you cards not applied for without checking to see if you could afford it and then they cry foul when the people ,that did not need it and only got themselves in deeper in debt, will not pay back. It is a racket meant to benefit the banks cause they are the ones that ultimately issue the cards, and now they can tell you what to pay which is more than the min cause they are such nice people and care about your ability to get out of debt so you have to pay more so you can be debt free faster but of course if you are late by one day on a credit card payment then there is usually I think now a 29 dollar charge put on the card so they can get the interest off that as well. It is all a big scam and our congressman and senators stood idly by and let them get it passed into law. There is nothing in the law to protect or help anyone but the banks that issue them. If not believed them just read the law on it.

Answer 3

there was nothing in it to protect the consumer, as far as I can see. The new law goes by the median income in your state to determine your eligibility to file chapter 7 bankruptcy. (if you make over your state median income, you are forced to file chapter 13, where you pay back a percentage of your debts).

This bill is also filled with other perks, just not for us. for example, some student loans (private ones) used to be dischargeable but they no longer are; the automatic stay is shorter and no longer actually automatic (the automatic stay means the second you file bankruptcy the people you owe money to are forbidden by law to contact you in efforts to collect the debt) the automatic stay was good because usually when people finally decide to file bankrtuptcy they are at the end of their rope, ya know?

I think the law sux and shows that we as a country are willing to put the interests of big business over that of individuals.

Answer 4

Not really. The credit card companies offer for a fee credit protection insurance which is your credit card monthly payment are made if you lose your job for any reason are hospitalized etc. This is great for them because if you carry a high balance you pay 1.00 per 1000.00 of debit. So if your balance is 10000.00 and you make a 200.00 payment your credit card gets charged an additional 100.00 for the protection so you have actually only paid 100.00 toward your balance. Evetually it get paid but you are still paying high fees for that protection. I don't think any laws today are passed with the joe blow consumer in mind.

Answer 5

When corporations write off bad debt, particularly due to bankruptcies, the cost of those bad debts is passed on to stockholders (who by a vast majority are normal consumers) and future customers, by means of higher prices.

What needs to be completed is an overhaul of our consumer debt system. Creditors need to be more conservative with how much the let people borrow. Example: my wife doesn't work outside the home (her choice) and our Bank just upped her credit limit to $17,000. Now how is a woman with no income going to pay a $17,000 credit card?

Answer 6

Filing bankruptcy is not a solution. It actually hurts the person for 10 years afterward.

Answer 7

it is aimed at big business. there is a lot shorter time before they must emerge from bankruptcy or be forced to liquidate....for freeloaders like you it stays the same