Posted on 03/08/2005 2:54:18 PM PST by Torie
I hope that helps.
I have this phobia about paying any credit card company one late charge or one penny of interest while present on this mortal coil. So far I remain a virgin, and pure. The credit card companies may make most of their money screwing people, but they won't screw me.
That is called indentured servitude. What if the debtor refuses to work as a slave? Will you amend the constitution to bring back debtor prisons?
The law currently provides that a Ch 13 must be complete in no more than 60 months.
You also have to dedicate 90 percent of your income after exemptions, to pay the bankruptcy plan.
THE SOLE purpose of this bill is to force more people into Ch 13's in the HOPES of getting a few pennies more for the unsecured creditors. (remember the secured creditors are SECURED).
The irony is that lawyers will make MORE money from a Ch 13 than a Ch 7.
This may be a little bit on the Hyperbole side, but anyone who pays a dime for credit card interest is an idiot living beyond their means (clearly I am with you). The only debt anyone should have is a mortgage and maybe a car payment (and that should be paid off early).
I especally like it when the credit card companies call and offer to up my credit limit (what? They think it isn't enough to buy a yacht or something?). I tell them, "no thanks" and they freak out.
That, my friends, is how you get a FICO of 820.
Well it is good to know there is a five year limit. What happens after that? Are the debts THEN discharged?
IF, very important IF, you have your Ch 13 plan approved, you essentially buy back the non exempt assets of your ch 13 extate. If you live in a state with no homestead exemption it means you WILL loose your home.
The final discharge means all debts are satisfied. It usually means the unsecured creditors are screwed with a few cents total.
If you can not finish in five years, you may not qualify for a ch 13. (ie back child support arears, mortgage arears)
It is remarkably liberating to do without many things including debt.
how interesting.... especially considering it was Republicans who helped to repeal or over-ride old anti-loan sharking bills to help states get into the legal loansharking business via credit card companies. the history of the whole thing is quite interesting, especially considering my own ex-con, ex-gevornor, ex-represenative - William Janklow(R) got the ball rolling right here in SD w/ citabank. why? because SD was the only state (or one of only a very few) who had no loan shark laws.
i'm even more out of touch... never used or had a credit card in my life. it makes it hard to do certain things at time like travel.... but i refuse to play the game. i consider them legalized loan sharks. (i do smoke though hahaha!)
If you get the right card, AmEx I think, you don't have to pay interest. There's an annual fee (a value for the convenience) and you pay the balance each month. Makes it possible to rent cars, buy airline tickets and check into hotels.
Which section? (I'm not disbelieving you, I just wasn't aware it existed.)
Well, that's of course the argument, but doesn't commons sense suggest that there should be some personal responsibility, some consequence, for creditors who invest their funds unwisely?
And isn't it amusing to hear this batch of leaders make those arguments while creating this kind of debt?
No slavery, and no prisons for debt (as opposed to theft).
But also no profit at the expense of creditors.
Can someone summarize this bill for me. Is it just about Ch 13 or Ch 7 or both.
Ch 7 is the only one most people really need access to, IMO.
Large creditors nowadays securitize the receivables - and make all of us (if only through 401k's) shoulder a large part of creditor's risk.
Creditors still lose money if a debtor doesn't repay his debt.
I think what you're saying is that creditors who are careful, creditors who take of themselves, didn't need any of these changes in the bankruptcy laws.
And I have to agree with you about that. ;-)
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