Monday, April 11, 2005

Wanna See Me Mad?

Then you should have seen my face when I read this entry from a blog I follow via Bloglines:

"Debtors Experience Hiding Cash"

Hey! Maybe that guy should meet the guy who writes this one:

"New Bankruptcy Will Discourage Entrepreneurs..."

Call it "corporate welfare" all you want, but you know what? I want bankruptcy laws even tougher than they'll be after this reform. That's right: Tougher. At this point, I don't much care how. I'm sick and f'n tired of the victim mentality so prevalent in this country. It is absolutely everywhere, and it is stifling. The whole schtick regarding "out of control, easy-money, predatory lending" has merit, and I'll gladly hold up a sign which says that crap needs to have some clamps slapped on it. But in the end, whether you signed up for that credit out of sheer ignorance, or lack of planning, or lack of any other viable options, or whatever ... well, it was YOUR choice regardless. YOU put yourself on the playing field. Now YOU get to play the game, and YOU get to play it by the lender's rules.

I'm still scanning through local bankruptcy cases online, and while random inquiries don't often pull up anything other than justifiable bankruptcies, I am seeing enough questionable stuff to make my blood pressure scoot up a notch or three. Let me tell you about the small-business owner who Chapter 7'd in April of last year, then apparently tried to hide from the court and her appointed trustee the $6,000 tax refund she received for 2003 . . ..

On second thought, no. I'm already pissed enough.


— Posted by Michael @ 12:02 AM


How many of the bankruptcies did you find that included medical charges? I would be curious about that, since some of those bills could wipe you out, especially if you have no insurance.


A lot of the tougher bankruptcy rules are conscious of medical dilemmas, because they are, in part, not controllable. Of course, there are some medical conditions that are (smoking or drinking to excess)... but I totally agree with you Mike, I think the folks who are bankrupt because they have too many flat screen televisions should be taken to task.



Every bk case I've looked at lists at least some medical debts in the petition. I have yet to find one, though, which lists any medical debts that total above $2,000. Most have a smattering of $25 to $200 claims. (If you're going to declare Chap. 7 and get the "fresh start," you might as well list everything, right?)

The problem is that some medical expenses might have been put on credit cards at some time in the past, and now only show up in the $30k+ (or whatever amount) of credit card debt the petitioner lists as a liability.

Every single case I've scanned, save one, has had credit-card debt as the petitioner's largest unsecured debt. Big surprise, huh?


The ability to seek protection in bankruptcy is important, both for entrepreneurs and for others such as true medical bankruptees, people whose identity has been stolen, people who lose a job, etc.

The trick is to weed out the people in your first link, playing the system, or the people who binge and purge in cycles.

But we mustn't throw the baby out with the bathwater.

Anonymous Anonymous
, at 3:00 PM, April 12, 2005  

Don't you see the irony in large corporatations and their marketing consultants offering large lines of credit to people to people who have no experience in financial management.

Then when the corporations are hurting too much from people declaring bankruptcy because they have offered excessive amounts of credit they lobby the government to change the bankruptcy laws.


I wouldn't call it "ironic;" I'd call it expected. Those corps are in business to make money, not lose it.

This legislation was 10+ years coming. It was just a matter of time before the lenders and lobbyists doled out sufficient $$$ and got the "right" mix in Congress.

Nevertheless, I'm still all for the bk changes.


I don't believe you need to have much "financial experience" to know that purchasing things with credit cards when you don't have the money in hand to pay it off, month after month, is going to create a problem.

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