This notion of a “premeditated bust out” where someone runs up a card with no intention of paying it amazes me. I can understand that some people commit fraud and do this, but the idea that the average American would do something like this is sad. More evidence that we have lost the notion of personal responsibility in our culture. Give me something for nothing—that’s the new American Way.
They aren't doing this to late pay customers, these are happening to long term customers with excellent records. Most of them find out about the cut when they attempt to purchase something. They are not even given advanced notice.
that is because “bustout” is a bunch of BS.
In bankruptcy, ANYTHING you do three months before you file bankruptcy is PRESUMED you have the knowledge you are going to file bankruptcy.
There is a ONE YEAR preference period where your transfers of assets to family and insiders (business partners) is supect and reversable.
Finally there is a FOUR YEAR statute of fraud period.
there are other date highlights but this are the major ones.
The notion of going to disney or a cruise then filing bankruptcy of utter BS. All the charges made there would become non dischargable.
What is really killing the credit card companies now is they are not able to sell off the bad debt AND people have grown wise to the credit consolodator scam. (aka glorified collection agencies who hurt more than help)
The credit agencies and banks saw this storm comming so they tried to prevent bankruptcy protection for these people.
Why does the bustout amaze you? People’s paychecks are raided weekly by the federal and state thieves. The banks conspire to screw individuals and business customers by playing games with interest rates and credit lines whilst your taxes pay for their bailouts. I can understand why some people are tempted to give it back as good as they got.
They should have never criminalized duels, and debtors prisons!