i just think that if people go bankrupt they should still pay something towards there debt even if its a small amount. At the end of the day they got themself in that postion and should still pay at least something. Anyone agree or disagree?
2007-12-04 22:08:09 · 9 answers · asked by Anonymous in Business & Finance ➔ Credit
ps at least once they're back on there feet.
2007-12-04 23:41:52 · update #1
As long as no fraud was involved I believe a person should be able to discharge their debts in bankruptcy. If any fraud was involved the government should prosecute to the fullest extent of the law. Also, many times circumstances are out of your control and through no fault of your own you cannot pay your debts. One of the primary reasons that American citizens go bankrupt is because of unexpected medical bills. (I also know a lot of people who used to work in high tech and now can't find a descent job.) Even if you have insurance, the high cost of medical care can destroy you financially. (I went bankrupt last year and it was because I was unable to pay my medical bills. I do not have insurance, just like millions and millions of other Americans.)
In my opinion credit card companies should be more careful about who they extend credit to. Credit card companies are much more sophisticated than the average American consumer. Also, credit card companies frequently dramatically increase the interest rates that consumers must pay and this forces consumers to file for bankruptcy. Before I filed bankruptcy many of my credit cards had jumped to an interest rate of 29%.
There is a huge stigma attached to going bankrupt. If you have poor credit or have gone bankrupt many companies will not hire you. You cannot get a security clearance if you have bad credit. Also, you will find it difficult to obtain a loan for a car or a home. If you are able to get a home or car loan your interest rate will be much higher. I believe a bankruptcy stays on your credit report for at least seven years. My number one priority right now is to improve my credit rating. Your credit rating is important.
Keep in mind that many obligations cannot be discharged in bankruptcy in the United States. A debtor cannot discharge any debts owed for child support or fines imposed by a court. (If you don't pay court ordered child support in many jurisdictions the judge will send you to jai.) Also, it is very difficult to discharge student loans in bankruptcy.
Under the new US bankruptcy laws if a debtor earns over a certain amount they must repay a percentage of their debts over a period of time. The new bankruptcy law is too harsh and the old bankruptcy law was way too generous.
Abraham Lincoln, one of the greatest US Presidents in history went through bankruptcy.
2007-12-04 22:44:58 · answer #1 · answered by sdn90036 6 · 5⤊ 0⤋
Disagree. To an extent. Sure some people abuse the bankruptcy system, but there are a lot more that did not "get themselves in that position". Here's hoping that you never:
Lose your home AND business in a natural disaster, and the insurance co. refuses to cough up a cent, calling it an Act of God.
Have your personal and business credit card interest rates *triple* because you missed a couple payments during aforementioned natural disaster, making it impossible to make even the minimum payments on the cards.
Get diagnosed with a devastating illness and have no health insurance to pay the medical bills that are stacked to the heavens.
Let's hope you never get yourself into one of these situations.
2007-12-05 07:24:25 · answer #2 · answered by ~RedBird~ 7 · 3⤊ 0⤋
I understand what your saying, but if a couple have good well paying jobs and a good standard of living and pay all their debts on time, what happens if they suddenly lose those jobs and end up on benefits. Their debts wont go away and they no longer have the money to pay.
2007-12-05 06:27:48 · answer #3 · answered by Anonymous · 3⤊ 0⤋
I partially agree. But not all debt clears (like student loans). Otherwise, extending credit by banks and credit cards is, for them, an investment, and all investments involve risk.
Since credit cards are very easy to obtain and use everywhere, they also offer the highest interest rates.
2007-12-05 06:15:57 · answer #4 · answered by Griffin 4 · 1⤊ 1⤋
They actually do have to pay whatever the court decides they can afford. They may also have to sell their House and cars and be left with only essential living needs, for up to 3 years.
2007-12-05 06:15:41 · answer #5 · answered by ? 6 · 3⤊ 0⤋
the govenment make the laws people live by them the government say you dont owe money after you go banko people only can abide by the laws of the country if you think it is not right, blame the goverment not the person that goes banko
2007-12-05 06:20:14 · answer #6 · answered by Anonymous · 0⤊ 0⤋
People who do file bankruptcy, usually are at their wits end and money. Interest on credit cards can be staggering. Give them a brake.
2007-12-05 06:18:48 · answer #7 · answered by Bob Dylan ♪ 7 · 4⤊ 0⤋
Yes, they did the charging. Some just don't know their limits. But I see many that file every chance they get. Should be punished for overdoing it.
2007-12-05 06:18:34 · answer #8 · answered by PATRICIA MS 6 · 1⤊ 2⤋
How can you pay with what you don't have.
2007-12-05 06:12:09 · answer #9 · answered by elizadushku 6 · 3⤊ 0⤋