Revamp of Bankruptcy Law Promised

A Semi-News/Semi-Satire from AzConservative ^ | 7 Oct 2008 | John Semmens

[John Semmens]

In his debate with Governor Sarah Palin (R-Alaska), vice-presidential contender Senator Joe Biden (D-Del) promised that an Obama Administration would overhaul existing bankruptcy laws.

“Right now, the law is focused on contractual obligations,” Biden said. “Need is not a factor in settling the issue. This has to be changed.”

Under the change proposed by Biden, courts would be empowered to adjust the principal owed on outstanding loans. “Say you can’t make your mortgage payments because you lost your job or your adjustable interest rate went up,” Biden said. “Well, under our plan, a judge would have the authority to reduce the amount you owe to bring the amounts due within your ability to pay.”

Biden defended the legal voiding of contracted debt as “basic fairness.” “Ability to pay shouldn’t trump your need for housing,” he contended. “It’s simple social justice. Those who have the ability to pay, should pay. It’s their patriotic duty. Those whose needs outstrip their ability to pay should be provided for by the government.”

[machogirl]

mainstream americans (i’m one, low income though) shouldn’t have to bear the burden of those who have been irresponsible.

i can’t afford a house to buy. i knew that. so i rent. when i have been responsible with my meager finances, why should i bailout those who haven’t and reduce their MORTGAGE, CREDIT CARDS, CAR LOANS?

[Ciexyz]

Nobody wants to play by the rules anymore. Everything is relative. I myself always had to follow the rules, nobody gave me a break like what these people want. And they will dip into my pocket to pay for it. Higher capital gains taxes and class envy from citizens who have nothing, taken from those who saved and labored all their lives. With their votes, they steal from my bank account. Legally. Makes ya sick.

[Nailbiter]

Faster and safer than using a gun.
Results are same for the victims

[Nailbiter]

Same thoughts that many of been expressing the last two weeks

[Trust but Verify]

What does this idea do to the overall mortgage market? How many banks are going to make loans to people who may default and run to a judge who will reduce the price of the home? It seems to me that people will be expected to have a high percentage downpayment and sterling credit rating to get a home loan.

[RU88]

These rats will say or do anything to get elected including the denial of statements made and recorded. Basic finance should tell you that if a borrower can claim hardship any time can not pay on a loan, whatever that loan may be for, that it will become increasingly harder and harder to be able to borrow money to finance purchases because a lender will be reluctant to risk the loss. I thought that the whole purpose of this “handout” was supposed to loosen up the credit markets. This kind of change in the bankruptcy laws can only have the exact reverse affect.