[lmr]

Sorry to interject here, but I think the last revision to the bankruptcy code artificially removed some risk for credit card lenders by promising credit card companies that a portion of their unsecured debt be guaranteed where it was previously a write-off.

I think if credit card companies had to take on all the risk, they might quit giving cards out like candy to any warm body.

Take care.

[kenavi]

I think the last revision to the bankruptcy code artificially removed some risk for credit card lenders by promising credit card companies that a portion of their unsecured debt be guaranteed where it was previously a write-off.

I am not sure what you are saying here. Who "promised" and who "guaranteed"?

Under bankruptcy law, a lender can't get a perfected security interest on a previously unsecured debt, unless he extends new consideration, such as postponing the repayment date. And his security isn't enforceable if the borrower files for bankruptcy protection within 90 days.

Giving lenders and other funding providers protection helps us all, by increasing competition and lowering the cost of borrowing. It is a major difference between us and undeveloped economies.

[Hillary's Folly]

Ditto and excellent point