Sunday, October 02, 2005

New Bankruptcy Law is a Turkey

Here in Center-Right blogger land we all pretty much hated this bill. In center-left blogger land the hate on this now law was even more pronounced.

but here in a washington post article we see it may be even bad for the creditors.

"A lot of folks just don't have the income to handle repayment plans, or they'll start out under a plan and a few years down the road, they'll get into some trouble and not be able to complete it as envisioned," he said.

In addition, he added, it could be a "win-lose" situation for creditors because higher administrative costs in dealing with long-term collection programs will eat into the money they recover.

And, because most Chapter 13 users will be put into five-year repayment plans instead of the three-year programs currently in use, it will take longer for lenders to see their money back.

So in other words... the greedy piggies in the bank and lending industry much like the dog in aesop's fable trying to get the bone in the water will lose the bone they already have.

Anyone who thinks getting a total chapter 7 in bankruptcy is easy should try going through with it. Bankruptcy judges can and often do reject such applications from people who are trying to get a free pass. This isn't like judges doing stupid things like releasing photo's of prisoner torture which everyone knows about and would provide nothing new or signifigant. This is a judge weighing the facts about a persons life and making a reasonable judgement.

Bad law
greedy bankers
bling congress

I hope they choke on it

No comments: