Fix bankruptcy law

07/05/2005
Fix bankruptcy law


Financial analysts characterized last week's acquisition of MBNA by Bank of America as a daring move by the buyer, a risky bet on continued consumer spending by Americans. MBNA is one of the world's biggest credit-card issuers.
But BOA, which has grown rapidly through an aggressive acquisition strategy, apparently didn't look at it as much of a risk. Executives required all of a week to decide to spend about $35 billion for MBNA, an amount that, if attended by risk might lead to a bit of a pause.

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Indeed, a bet on consumer debt in the United States cannot truly be characterized as a bet. Americans, largely because of the sort of aggressive credit-card marketing used by MBNA and a few other big issuers, are wallowing in nearly $2.5 trillion of such debt.

Moreover, because of a new anti-consmer bankruptcy law that is about to take effect, there is virtually no risk that consumers can evade any significant part of that debt. Because of the draconian nature of the new law, that is so even when bankruptcy is caused by an unforeseen medical emergency, the leading cause of bankruptcy.

That should not preclude fairness for consumers, however. The problem with the bankruptcy law is that it prevents consumers from evading crushing debt without doing anything to prevent big credit- card issuers from luring them into it.

Congress should revisit the bankruptcy law to prevent predatory lending and to cap interest rates that can be charged by lenders. It would be fair to close the door to bankruptcy if the law offered consumers more protection at the front end of the process that produces it.

So, what can one do? :(

:D
Use that credit card wisely and pay it off each month if you can. Purchase items 90 days same as cash if possible.
Then banks receive no interest, no penalties, etc. yet the consumer has the use of the card for emergencies, online transactions, and rebuilding your credit score.

Use the cc companies, they can't make money if no interest, penalties, etc are coming in!!!!

Banks make a fortune off people using cc. Time to turn the tables on them a little. No "customers paying interest/penalties" they will be lowering interest rates, begging for people to use their cards......

Make that cc card work to your benefit.....

Minny :aggress:

An even better way to use them is get some type of rewards card which I'd love to get sometime after my discharge. My sister and her husband have a GM card they pay off every month and I believe they had another that used to give cash back. It's like free money from the credit card companies. They really hate it when they have to do payouts to someone who never carries a balance, but too damn bad they make billions off the rest. Use their own policies against them. My sister told me the bank she used to work at before they got bought out made over $300K in overdraft charges one year and that was just what they were able to collect. They were a small regional bank, imagine what the big boys rake in for all their fees.

07/05/2005
Fix bankruptcy law


Financial analysts characterized last week's acquisition of MBNA by Bank of America as a daring move by the buyer, a risky bet on continued consumer spending by Americans. MBNA is one of the world's biggest credit-card issuers.
But BOA, which has grown rapidly through an aggressive acquisition strategy, apparently didn't look at it as much of a risk. Executives required all of a week to decide to spend about $35 billion for MBNA, an amount that, if attended by risk might lead to a bit of a pause.

Advertisement


Indeed, a bet on consumer debt in the United States cannot truly be characterized as a bet. Americans, largely because of the sort of aggressive credit-card marketing used by MBNA and a few other big issuers, are wallowing in nearly $2.5 trillion of such debt.

Moreover, because of a new anti-consmer bankruptcy law that is about to take effect, there is virtually no risk that consumers can evade any significant part of that debt. Because of the draconian nature of the new law, that is so even when bankruptcy is caused by an unforeseen medical emergency, the leading cause of bankruptcy.

That should not preclude fairness for consumers, however. The problem with the bankruptcy law is that it prevents consumers from evading crushing debt without doing anything to prevent big credit- card issuers from luring them into it.

Congress should revisit the bankruptcy law to prevent predatory lending and to cap interest rates that can be charged by lenders. It would be fair to close the door to bankruptcy if the law offered consumers more protection at the front end of the process that produces it.

I really have not heard a great detail on what the new changes are, I just hear wording like, its changing, avg worker will pay more, can only file again in XX amount of years, bla, bla, bla,

so what if you are unemployeed? this turnup does not have blood to donate.

I really have not heard a great detail on what the new changes are, I just hear wording like, its changing, avg worker will pay more, can only file again in XX amount of years, bla, bla, bla,

so what if you are unemployeed? this turnup does not have blood to donate.


Actually, being unemployed would be a benefit..After all, you'd be running off through temp agencies (I used to be registered with 4 during Holidays which was good as all were slow) and so, the collections couldn't easily find which one you were out of. :beee:

They wouldn't get very much off you and it sure wouldn't last as you could find "Other employment" quickly (After all, no or rare is the temp agency which gives med/sick/vac pay from day 1) and so they have to go and find you again and get another (I'm thinking they'd have to) court garnishment for the other employer. :beee:

Drawback to being a temp is just the same..No sick/vac pay and no med benefits.:cry:

I really have not heard a great detail on what the new changes are, I just hear wording like, its changing, avg worker will pay more, can only file again in XX amount of years, bla, bla, bla,
so what if you are unemployeed? this turnup does not have blood to donate.



I think this is the same media scare tactic that brainwashed many filers to file before the Oct deadline when some probably didn't need to file. I read the new laws through and through and found nothing in it that prevents anyone from debt relief. Congress changed about 200 sections in the law to accomplish 3 things.

1-Make bankruptcy a last resort and not a 1st,
2-curb abuse such as phony filers just filing to delay creditors with the automatic stay,
3-curb fraud such as eve of bankruptcy charges or looking back 2 years instead of 1 for illegal transfers of property.

I do wish the chapter 13 was still 3-5 years instead of 5 years. The means test was always in use by the US Trustee and now it's up to the debtor to file instead so nothing changed there except more paperwork. Some lawyers never informed clients of 707B and that's why they must certify the petition. Too many filers thought that they had a choice between a chapter 7 & 13 pre-oct 2005 and they didn't.
The good thing from the test is it answers questions and allows expenses that some courts felt were luxurys while others felt it was reasonable such as cell phones and IRA loan payments.

Don't misunderstand me please. I'm not in love with the changes. I just feel it will serve the honest debtor with relief as they deserve and screen out the abusers.

The best part of the new laws in my book is the part that "makes attorneys reponsible for their actions" when handling you case.
No more - cover my own butt - lawyers. If they are caught, they are penalized heavy under the new laws and can be held liable to the debtor for poor defence......
LOVE IT.......

We hire them for "their expertise as bankruptcy attorny's," so THEY SHOULD BE HELD LIABLE" when their actions or lack of actions cause us undue harm in court....

They know the laws and rules - we don't - so we hire them.....

Minny

I continue to be very disillusioned with watching the bankruptcy legislation, price gouging, outsoucing, etc. in this country. It's a snapshot of moving wealth from one place to the other, in my humble opinion. I agree with MinnyMouth: Make that card work for you and not against you! Credit cards are THE MOST lucrative segment of banking. I read a very interesting article about this reform and the anticipated rash of filings in October. There is a second rash of filings anticipated for January 2006, and again in the spring: Partly from increased cc minimum payments, Christmas spending and fuel costs. We'll see. I wish upon everyone who has had to endure a BK filing in 2005, a peaceful night's sleep. A dollar note used to be backed by gold, and that same gold is becoming more and more fractioned. The dollar value is becoming fractioned. I sound like a rebel heretic and I'm sorry, but what happened to me this year made me wake up and begin to do some reading! Secured debt will be the only debt in my future! Please have a peaceful night's sleep anyway - you've earned it!

MinnyMouth, your dogs are darling. I have two of my own.

Thanks, love my "girls" - without them I would be LOST..... They are my buddies for sure..... and my stress relievers....

Every animal deserves a good home!!!! Even the wild ones!!

Minny

MBNA is one of the most agressive creditors I have ever dealt with. Maybe BOA thinks they can learn something from their "Predator Model" I mean "Business Model".

Part of selling the new law to congress was that credit card companies could charge lower rates since there was less chance of people just walking away from the debt. We all know that was a lie....has anybody seen interest rates come down since the new law was enacted? Not me.

Part of selling the new law to congress was that credit card companies could charge lower rates since there was less chance of people just walking away from the debt. We all know that was a lie....has anybody seen interest rates come down since the new law was enacted? Not me.


You got that right! Everyone on all sides of the issue knew that was the biggest line of bullshit ever spoken by anyone.

Answer:No. :beee:

My 19 year old daughter has a Clout "college" VISA; they just raised her credit limit after 9 months from $300 to $500 AND her interest rate from 21% to 24% with no lates or overcharges. Her sister has a USbank VISA college rewards card, and its limit went after a year from $500 to 1000 --- and interest rate went from 18% to 21%. Hmmm...no rate lowering here, and increased limits...dangling that baited hook for the next generation already.

I'm glad you posted that LaP. Son has been getting those "College Student" CC offers in the mail.

At first he said NO NO NO. But I told him he ought to consider taking at least one. He could charge his gasoline and pay it off each month. Get a positive reporting tradeline going for himself. And, with a $500 LOC, he'd have nearly enough money to buy books for a semester, if he needed a little extra to jump start the semester. Heavens knows we can't help him now.

He got a CC offer recently, and he'd decided he might take this one. It said he was pre approved. I happened to run a CR on myself the other day and it got me to thinking,........... We should run son's at annualcreditreport.com. See who's been doing pulls on him, if anyone.

Hubby and I still get pre approved offers in the mail, but I noticed that no one has been pulling my CR lately, but the CC's we already owe. They've been busy beavers. Pulling a couple of times a month the last couple of months.

So how can you get a pre approved CC offer if the Creditor hasn't even done a pull on your Credit??!!

Someone must be compiling lists of college bound juniors and seniors at least, because around Xmas of senior year letters like "Dear parent --- need help paying for college..." begin to arrive also. I may have to ask some business faculty about that tomorrow at school.

Yep, that's how they do it, get the enrollment information and make them offers.

Sinking, since your son doesn't have any credit yet (I assume this to be the case), he probably doesn't have a credit profile yet....unless he has a card, been doing online gambling ... I saw a story on this, it was a sad story, the kid killed himself over his credit card debt, he was in college and hooked to online gambling.

Someone must be compiling lists of college bound juniors and seniors at least, because around Xmas of senior year letters like "Dear parent --- need help paying for college..." begin to arrive also. I may have to ask some business faculty about that tomorrow at school.

They send them to all graduating juniors and seniors--not just ones going to college. Even if they can't target their particular audience, the cost of sending the applications to all is well justified since the returns are so high for them.

And yes, my dog has gotten credit offers. I use her name when I request free info to see who else the company sells their lists to.

Son got all those, "High School Senior" offers last year and we just tossed them into File 13. Those didn't say "pre approved" or set specific limits.

Now he's finishing up his Freshman year in college. Still getting offers. These new ones say "pre approved" and set $$ limits. Like "You're automatically approved for a minumum of $300. And may get a LOC up to $1K." Some are banks we recognize and some are names we've never heard before.

Aa,........ Son has no credit. Hasn't officially borrowed a penny from anyone for anything. He's paid his way in cash to this point. And the poor boy doesn't even have time for a gambling addiction. He's meeting himself coming and going. This semester especially. Due to his class schedule, he has to work Th/F/Sa/Su. In class the rest of the week. And with final projects being due, he's been spending extra time in the school computer lab rendering his CADD projects. Huge files that take a while to process after he creates them. He's so looking forward to the end of this semester. Months on end of going 7 days a week has been hard on him. At least when he played football, they got Sundays off. :D

SinkingFast,
Sounds like your son is a "go getter".................. more power too him.... If he puts that much effort into a career.... he will go places!!!

Yes, it's probably time he tried to establish some credit... A credit card, used for gas is a good idea, (low limit).... to get him established. But tell him to pay only 3/4 of the bill each month and leave a balance to revolve, thus creating a revolving account... (better reporting)...

And should he have an emergency come up, then he has something to fall back on to help him out.......

Just caution him on the pitfalls for using it for fun and games.... surely he understands what all you went thru in bankruptcy....

Just my thoughts,

Minny :D

Also, tell him to "stop and smell the roses" once in a while........... life is too short to work yourself to death when your young..... he'll blink an eye and be looking in the mirror at an old man!!!

He needs to enjoy his youth also, while he is learning.......

It's just the odd scheduling of his classes, Minny. Being a small college, they gear many of the Core classes for adults who work in the daytime.

Son's had classes 3 nights a week this semester. Plus day classes those days as well. And then he works. And Wal-Mart works around his schedule, thankfully. But it's been a killer this semester. Last semester, in the fall, he managed to get one day on the weekends and a night or 2 thru the week. Not this semester. Wally World has him as a 32 hour/week employee. So with the class schedule, he goes 7 days a week.

He really needed to go to Summer School and catch up on a class he missed scheduling last fall. Not enough students so the school cancelled it. That put son behind. But Summer Semester is a full 10 weeks. He'd be tied up all summer in class and with his work schedule, it'd be another long semester. So we said don't worry about graduating in 2 years. So what if it's December and not May. Take it easy in school since he's working so much. So that's his goal now. Take his time for classes and do it right. Not kill himself trying to meet society's graduation date.

And, Yes, he's fully aware of the woes Credit can cause.

Gosh,
It's been MANY, MANY YEARS AGO, but I remember working full time and going to college............ a killer situtation.....
Used to meet myself coming and going............. 7 days a week for several years (between working and classes)...
Not much social life either, too busy studying, working......

When it was all over I felt like I had been on a roller coaster ride......

HAT'S OFF TO YOUR SON................ it will be hard, but worth it......

:yahoo: :clapping: :D :yes2:

Minny

I remember graveyard shifts then going straight to class afterwards. Those were the days....NOT!

He whines a bit to me, but I was in the same boat in college.

Science major. One semester I was taking 17 hours of class but with labs, I was physically in class 22 hours/week. I also worked 32 hours a week. Th and F nights 2pm to 10pm, then I doubled back in on Sat morning and worked Sun mornings 6am to 2pm. I was going 7 days a week then too, on very little sleep. Son's schedule isn't nearly as hectic as that. So I don't let him whine too much. :D

But I pushed myself way too hard to meet the "must graduate in 4 years" mental thing. When you're young, you don't realize how hard you're pushing your body. And our summer semesters were little mini things. Go to class every day for 2-3 hours/class for 3 or 4 weeks. You could do a summer thing, pick up a couple of classes, and still have some R&R time in the summer. For Son, with summer school going 10 weeks, he'd go right from Spring to Summer to Fall with no break.

It ain't worth it. Take the time. Go a little slower in school. Graduate a semester later. 20 years from now, who'll know or even care??!!

If he weren't working so much, that would be a different story all together.

It'a amazing, a college student with little or no income can get a bigger line of credit then this 40 something man with a good paying job...LOL!!!!!!!! and if I need to buy something, I have to ask permission from my new "boss". I feel humiliated.

I think the deregulation of credit card fees initiated by Citibank is the most frightening act of legislation yet. There is no "legal" regulation anymore. They can impose whatever they want, whenever they want, legally!! Kind of makes one wonder, who/what is really running things around here? Then I read that Citi's largest single shareholders are Saudi!! Hmmm, that's curious, as I'm also paying $30.00 to fill my 11-gallon Miata gas tank lately. I'll say it again: Thank you life crash and financial disaster for my opportunity to file bankruptcy, former nemesis turned blessing. Not to be a doomsday-sayer, but I think a big tsunami lurks, figuratively, and it will be a stroke of fortune to be disconnected from The System. Of course, I hope I'm wrong and paranoid.....

Oops, I don't know how I ended up in this thread, I was replying to another one about interest rates NOT DECLINING since the advent of the new BK law. As long as I'm here, Hi Minnymouth, I always like reading your comments. I did the school/job/second job myself and about died. I can see why people don't ever do it. It is so hard, and hat's off to those that are taking it on.

Bye for now, Cooper

copper 2

LOVE THE DOGS - YOURS??? WHAT KIND???