Does anyone wish there were another option?

[debtprison]

I wish there were something like a Chapter 13 which instead went on for up to 20 years, reset all balances to principle amounts without any other fees, and capped the interest rate at 5% for the life of repayment.

The debtor would simply make payments according to that.

I would prefer to pay the principal debt on say my taxes. The amount that I owe. But I don't think it's right that my debt doubled and they charged penalty upon penalty during the years where I lived in poverty. Same with any other debt. I don't think its right owing $20,000 should turn into $50,000 by the time I'd be able to pay it back in ten years.

[frogger]

I understand what you're saying, but it's never going to happen. The bankers have too much control in DC for things to ever change.

[debtprison]

I understand what you're saying, but it's never going to happen. The bankers have too much control in DC for things to ever change.

That pretty much eliminates any guilt over declaring BK right there I think... It's not that people don't want to pay back their debts. IT's that they don't want to have to pay back three times their debts...

[nc73]

I hate to be the bad guy but we all knew what we were getting into. There is no free ride. The currently bankruptcy law sucks but we have no choice but to live with it. Sure I'd wish there were other options but it usually means paying part of the debt back. The other option would be to win the lottery, but that's not going to happen. Eh life's a beach..then you marry one and finally you die.

[debtprison]

I hate to be the bad guy but we all knew what we were getting into. There is no free ride. The currently bankruptcy law sucks but we have no choice but to live with it. Sure I'd wish there were other options but it usually means paying part of the debt back. The other option would be to win the lottery, but that's not going to happen. Eh life's a beach..then you marry one and finally you die.

I agree a little bit. But there's a lot I don't agree with.

I'm not asking for a "free ride". I'm asking for something other than usury and exploitation.

I wouldn't mind paying the principle on the taxes with a decent interest rate. Not at all. To me that is my "fair share". Nor would I mind paying the principle on my student loans with a decent interest rate.

[sigferl]

Thanks for your post dp. What if the shoe was on the other foot and you loaned someone $20,000 and expected to be quickly repaid according to the contract? Would you fell the same?

Banks have to charge a high interest rate becaus of the high default and BK rate. If 10% of your loans were not repaid then you would have to charge at least 10% interest to those that repay the loan just to break even, without paying any salaries or expenses.

I suggest that you start a small bank(micro loans) and then you will see for yourself how hard it is to stay in business and charge little interest. Banks are necessary and have to make money to stay in business.

God Bless America.

I wish there were something like a Chapter 13 which instead went on for up to 20 years, reset all balances to principle amounts without any other fees, and capped the interest rate at 5% for the life of repayment.

The debtor would simply make payments according to that.

I would prefer to pay the principal debt on say my taxes. The amount that I owe. But I don't think it's right that my debt doubled and they charged penalty upon penalty during the years where I lived in poverty. Same with any other debt. I don't think its right owing $20,000 should turn into $50,000 by the time I'd be able to pay it back in ten years.

[debtprison]

Thanks for your post dp. What if the shoe was on the other foot and you loaned someone $20,000 and expected to be quickly repaid according to the contract? Would you fell the same?

Banks have to charge a high interest rate becaus of the high default and BK rate. If 10% of your loans were not repaid then you would have to charge at least 10% interest to those that repay the loan just to break even, without paying any salaries or expenses.

I suggest that you start a small bank(micro loans) and then you will see for yourself how hard it is to stay in business and charge little interest. Banks are necessary and have to make money to stay in business.

God Bless America.

Well what I am speaking of is 5% interest without penalties and repayment of the principle. That's a lot better than a full chapter 7 discharge. As a bank I would much rather see the (principle + 5%) rather than $0.

Personally I consider anything over 10% usury but I realize this is not the popular view.

Regarding the contract usually it includes language which allows the bank to change the terms where your only remedy is to immediately pay off the debt to get out from it. Hard if you have no money. Lots of folks these days were paying !2% or less but suddenly get told the new rates are 25% or more. Or the banks take the changing of the minimum payments from 1% to 5% of the outstanding balance. It's rather one sided as it is now and in my opinion rather predatory.

[justplaintired]

If I had hit the lottery, first thing I would have done is paid off these debts. I honestly planned that out in my head that's how badly I wanted to repay this debt. When our first cc went up to an unbelievable rate, I cried, begging them to lower it, I even said we couldn't make the payment, she said they couldn't do a thing. It hit me then repaying those debts would simply never happen.

So we opted for BK. Even that I dragged my feet on thinking maybe something would happen and I could figure out a way to repay it. It didn't happen.

So, far as repaying, it isn't even an option. It never could be. All the settlements they offered were impossible. Even with me getting a better job, it's impossible. I no longer dream of repaying, it's not realistic, it won't happen. I accept my situation, we filed, we are close to the end, I learned that credit isn't a necessity, it's not something everyone needs, some are better without it.

[AngelinaCatHub]

Thanks for your post dp. What if the shoe was on the other foot and you loaned someone $20,000 and expected to be quickly repaid according to the contract? Would you fell the same?

Banks have to charge a high interest rate becaus of the high default and BK rate. If 10% of your loans were not repaid then you would have to charge at least 10% interest to those that repay the loan just to break even, without paying any salaries or expenses.

I suggest that you start a small bank(micro loans) and then you will see for yourself how hard it is to stay in business and charge little interest. Banks are necessary and have to make money to stay in business.

God Bless America.

Yes. I agree. I hope God does bless America.

Sig, I agree with what you say to a point. Nobody breaks your arm to use the credit card. However, you know and I know you know, that some of these companies hike up interest at the worst possible time and without warning. Who the hell reads the fine print on any document. When you buy a car it would take two days to read all that paperwork. You sign, get keys and drive off happily ever after in debt.

Anything in the 20% range in my opinion is Usury.

I had no choice when we were forced by circumstance to bk. We were once worth 10 mil on paper in land. We were set in money. We gave our land for use of a wild life sanctuary and park with an easement that would never destroy the property by "improving it". Then all hell broke out in our life and health. I went for 13 NOT to stiff my CC's who gave me money when I asked and I had cards that had 100k limits. I paid 30K in lump sums every year. Now I have to scrounge if I want a beer. BUT, life is still good. I came into the World naked, someone else dressed me, I wore diapers. I'll go out with diapers, someone else will dress me and the wheel turns. 'Hub