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Anything good for consumers in the NEW BK laws?


ThePeacock
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Not really. Though I suppose since the corporate bankruptcy law was revised also but not nearly to the extent the consumer bankruptcy law was changed there could be some hope that corporations won't be raped and pillaged like Tyco or Enron and then go belly up.

It could eventually lead to making credit more uniform and eventually lower cost to finance items since the abusers would be culled from the pool but that's a big if and lots of trickle down has to happen before any of us see it.

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Essentially - no.

The BARF bill was bought and paid for by the credit card and banking industry to intentionally make it more onerous for people to discharge debts in bankruptcy.

The propaganda in support of this law will tell you that children will benefit because child support obligations will be a priority - which is stupid because child support was NEVER dischargeable. In fact, the new law will more than likely HURT custodial parents owed child support because those seeking the funds will now have to compete with the big banks and car companies to get their money - and few (if any) single mothers have the resources to fight their way thru the process with the financial bulldogs in the way.

The supporters said it would stop the 'abusers' ..which it probably won't do, they'll find loopholes and the REAL 'abusers' amounted to less than 10% of filed cases, some say as low as 2% !!

For a VERY few, the only thing I can think of that *MIGHT* be of marginal benefit is the credit counseling for those who truly have no clue how to handle money and credit. People who wind up with crushing medical debts don't need any lectures on how to handle credit card debts.

The really ugly thing that will probaby have further repercussions is this law is likely to stifle entrepreneurs who would start up their ventures by personally guaranteeing loans and such.. and when that business fails, THEY will be liable for all those business debts. You'd have to be pretty sure you've got a lock on solid profits in short order to want to risk the burden of tons of debt if the business fails.

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Yes, its 'intact' but they've ripped the crap outta that too. There are many things about Ch 13 that weren't terrible that are now pretty horrible. Creditors have more rights and powers with objections, you get LESS protection in some situations, cram-downs are gone.. its a laundry list of 'beat the crap outta the debtor' -- even when they're trying to pay something.

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  • 2 weeks later...

Nobody I know has any idea what this means to the average person. They all mention how "Its about time big business was stopped from declaring BK". When I mention that its the little guy that is getting beat up they then speak of "Reckless spending".

I can't get it through to these people that two weeks in the hospital and they'll wish the laws were the same. Isn't the statistic that 70% of BKs are medical related?

Propaganda is the correct word for what led up to the passing of the reform.

I've even heard propaganda that this "reform" protects the small business owner. B.S. As ladynred stated what would the purpose of starting a business be if the downside is so terrible as to follow you for the rest of your life. I have yet to meet a person outside this forum who seems to understand what has happened to the average Joe by the introduction of the new laws.

I wonder how the people in New Orleans are going to explain their reckless spending which led up to the flooding of their homes? Perhaps both spouses should have worked two jobs and left their children home unattended to get out of debt the "Proper" way. Perhaps that would have stopped the rain.

Is their any way to reverse these new laws?

Gettinout

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Reverse ? Unlikely. However, there have been several proposals for legistaltion to mitigate some of the nastiest provisions of the BARF law. Not sure if they'll get thru with the current members of the Senate and Congress.. it'll take the people to VOTE OUT THE SUPPORTERS of this bill to make any headway.

People who have never been put into the situations that causes so many to file BK will NEVER understand that its NOT 'reckless spending' at all !!

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