New Banckruptcy Laws Article

[RomanticSage]

Hey all, recently wrote and article on the new bankruptcy laws and found some very surprising, quite offensive facts I wanted to share. Let me know what you think!

Sage's Bankruptcy article

[JRScott]

Nicely written

[Gerry]

May I?

The bankruptcy process wasn't any less condescending before the new law went into effect. If anything, filing is now more commonly perceived as a sound financial decision rather than an easy way out.

Attending pre-filing and pre-discharge counseling is hardly a contemptuous ordeal. Its intent and purpose is to help the filer prepare for a fresh start by reviewing cash flow and budgeting. It's not unreasonable to expect that everyone could learn at least one useful thing from attending, although certainly a filer who believes s/he is above such treatment will fail to gain anything from the process. Going forward with resentment rather than an open mind rarely results in a useful expenditure of time.

At no time have I perceived "not-so-subtle implications that low to middle-class families are irresponsible, ignorant, and greedy". The attorneys and trustees with whom I've dealt may very well be more accepting and forbearing than those you've had to endure, but perceptions are a choice; to quote Eleanor Roosevelt, "No one can make you feel inferior without your consent."

If the "vast majority of bankruptcies ... are filed due to enormous medical bills" and the "average person wants to pay their bills and handle their responsibilities", then the evil credit issuers who you allege manipulate Average Joe are sorta pissing in the wind, aren't they? If a person isn't in debt due to medical bills and wants to be responsible and pay what they owe, then what's left?

Hmm. People who could use pre-filing and pre-discharge counseling, perhaps.

The truth is that there are as many reasons for bankruptcy as there are ways to get into debt, as can be gleaned from perusing this very forum. Placing the blame for credit card debt on societal pressures and skillful marketing is irresponsible, convenient victimization.

[BigJohn]

If a person is filing because of medical bills, will credit counseling help?

If a person makes made decisions while sick, will credit counseling help?

If the housing market collapses making it almost impossible to refinance, will credit counseling help?

If the dollar only buys about 1/2 half of what it did 3 years ago, will credit counseling help?

I found the article to have been written by somebody who never has been in bankruptcy and has very little idea what bankruptcy is all about.

[kornellred]

I am in my second bankruptcy. Chapter 7 in 1994 - brought on by divorce (child support for three kids, alimony). I did not earn enough money to support my unsecured debt, so away the debt had to go.
This time around, it's Chapter 13. And not because I cannot afford to support my debt - I can. It's just that I don't feel like supporting it any longer. How dare I!

My turn to be condescending.

[banca rotta]

May I?

The bankruptcy process wasn't any less condescending before the new law went into effect. If anything, filing is now more commonly perceived as a sound financial decision rather than an easy way out.

Attending pre-filing and pre-discharge counseling is hardly a contemptuous ordeal. Its intent and purpose is to help the filer prepare for a fresh start by reviewing cash flow and budgeting. It's not unreasonable to expect that everyone could learn at least one useful thing from attending, although certainly a filer who believes s/he is above such treatment will fail to gain anything from the process. Going forward with resentment rather than an open mind rarely results in a useful expenditure of time.

Ditto!

[momof5]

This article took me back a few weeks ago when I did my pre bankruptcy counseling. I know its required and I do appreciate that for some people it is probably very beneficial. But for us it was not only embarrassing but pretty much a waste of time. We certainly did not think we were 'above' such treatment as a previous poster suggested. No resentment.

My husband lost his job and was awaiting the start of a new job. We new we had zero income. We knew how much money we had to make to survive post bk. I am just so glad the whole session took place on the phone.

They waived their fee even! After asking the attorney he said he has only had that happen 1 or 2 other times in 3 years! It was hard enough for us to sit in he attorneys office and show on paper how truly bad things were yet to share it with a complete stranger, from some place in this vast country that ended up cutting the session short. He said there was really nothing for him to work with at that point. It was humiliating.

I should also add that we have many many MANY unsecured credit cards and used them to the max. Very irresponsible yes but never with the intention of not paying them back.