Legally there's no bar to anyone lending you more money. Practically, you would think that the bk filing along with all other old debt should serve as a market bar for cc lenders extending more credit, though who knows if the more aggressive ones might not still solicit balance transfers. The creditor's recourse for collection would be wage garnishments though they may end up competing with other creditors for that.
I think the more likely scenario would be, if the debtors sought more credit, would be through the new pay day lending networks set up by the major CC lenders under different names. They use post-dated checks, direct access to debtor's bank accounts, and threat of criminal prosecution for a bad check if there are insufficient funds in the account. I am told the pay day lenders fees and rates dwarf regular CC fees and rates though I wonder how that could be possible.
Whether the debtor seeks more credit from payday lenders or not, the prior creditors will ultimately get judgments and start garnishing wages (in my state up to 25% of the check). With default fees and penalties and attorney's fees and costs, these people will most likely never be able to payoff the principal of their indebtedness and that is why I describe them as trapped and not functioning at an optimum level.
"....prior creditors will ultimately get judgments and start garnishing wages"
I see now.
Nothing prevents a creditor from garnishing wages if you don't follow Chap 13 to the letter.
That's what will bet the growing industry....Wage garnishment from folks who didn't fulfill Chap 13 obligations - so he who garnishes first, garnishes most?
The creditors will get the money before anyone, and there won't be a choice, like I suppose there is when deciding whether to meet Chap 13 obligations.
These folks will have every reason to drop out of the economy, work under the table, and/or go on welfare, because they'll live better than they otherwise would, but not as well as when they were living on credit.
I don't know how I feel about this, truthfully. On one hand, they'll serve as examples, on the other, they could potentially be supported by society, and perhaps at even greater cost than a Chap 7.
I don't tend to want to give folks who take advantage the benefit of the doubt in this case...... if they get this far down the line, the courts have decided they don't deserve the opportunity to walk away from their debts. I'm ok with finding out what happens under the new revisions.