Wednesday, April 20, 2005

This is a good thing.

Bankruptcy was originally intended as a protection for those who legitimately need time to be able to figure out how to pay off debt... not as a "get out of debt free" card.

Bush Signs Big Rewrite of Bankruptcy Law


At 3:10 PM, Blogger e.gage said...

I'll be honest - I didn't read the article but where the freak can I get one of those "get out of debt free cards?" I'm so sick of this damn responsibility everyone keeps trying to pull out of me. It isn't there people!

At 8:45 PM, Blogger Maine Man said...

I'm sick of having to pay for other people's incompetence. Now if they can just translate this sort of thing into the insurance industry, welfare/medicaid, Social Security, and the "negligence" laws, we might be able to finally excrete the selfish and lazy parasites out of our society.

At 8:35 AM, Blogger Nathan said...


Along the same lines, everyone talks about healthcare reform. Let's put a cap on malpractice lawsuits. Then doctors' insurance premiums will go down, we'll have to pay less, and ultimately our insurance premiums go down. Everybody wins.

Medicine is not an exact science. Sometimes bad things happen and it's nobody's fault. Multi-million dollar settlements should be banned, shunned, ridiculed, and otherwise forced out of existence.

At 12:14 PM, Blogger j.m. said...

Getting paid millions because YOU are stupid enough to drink scolding hot coffee... something's not right with the system... People need to take some responsibility for their own actions.

At 4:29 PM, Blogger erinberry said...

Most bankruptcies are filed by people who have medical emergencies or lose their jobs. It is ignorant to paint the picture of them as lazy or irresponsible. Unless you think getting cancer when you can not afford health insurance, or you can not afford the deductible on your health insurance, counts as being irresponsible.

I encourage you to rethink your judgmental attitudes, especially if you call yourselves Christian. You could be one medical emergency away from bankruptcy yourselves.

At 8:06 PM, Blogger Maine Man said...

I would have to disagree with your assumptions. You assume that they "can not afford" their health care. I'm not suggesting that medical emergencies don't occur, nor am I saying they are not expensive. I'm not even saying that such situations always occur because the person has acted irresponsibly.

What I am saying is that if one lives within his/her means and sacrifices one's wants instead of mistaking them for needs, that it is amazing how affordable the true needs become. Furthermore, I will gladly swallow my comments if you can show me that those declaring bankruptcy from such situations have truly done everything in their power to pay their debts.

The article is obviously referring to those who think they can get something for nothing and so are we. Are you suggesting that those without the consumer debt should have to pay for the follies of those with it? Because, if you never get yourself into consumer debt, then you never have to pay it back. That is, unless you have to shoulder the consumer debt of someone else through unfair bankruptcy laws (and the rest of the programs I mentioned in my original posting).

A little statistic for you from the Federal Reserve (
The typical family filing for bankruptcy in 1997 owed more than one and a half times its annual income in short-term, high-interest debt. A family earning $24,000 had an average of $36,000 in credit card and similar debt.

One more thing. I do not remember Christ ever taking what belonged to one person and giving it to another. That is unchristian. Personal responsibility was one of Christ's central lessons (if you think otherwise I encourage you to actually study the scriptures). The poor should be cared for- I doubt anyone in this forum would disagree- but the choice should belong to the giver and not be a mandatory tax.

I would be careful of who you accuse of being ignorant.

At 9:56 PM, Blogger Charley Foster said...

The bill doesn't prevent anyone from discharging their debts. It requires the wealthiest 1/2 of people in their state of residence to attempt a chapter 13 reorganization before they are allowed to file a chapter 7 liquidation. It's hardly a return to the days of debtors' prisons.

At 9:59 PM, Blogger Charley Foster said...

And - actually, bankruptcy was originally a means for creditors to dismantle the debtor's estate in an orderly fashion in order to eliminate the race among creditors to acquire the lion's share of the debtor's assets. It evolved into a means to give the debtor breathing room - and a "fresh start."

At 11:22 PM, Blogger j.m. said...

This comment has been removed by a blog administrator.

At 3:25 PM, Blogger Slam Smith said...

If you want really good info on the bankruptcy reform, read these articles by Todd Zywicki. It is really eye opening.

At 9:32 PM, Blogger Ethan said...

I heard (this is what I heard from a law clerk here in slc) that the creditor that appears most often in Utah bankruptcy filings is R.C. Willey. If that's true, what does it say about why people file.

At 10:12 PM, Blogger Charley Foster said...

I can believe that. RC Willey is certainly at all the meetings of creditors (every bankruptcy has one, a creditor meeting that is) but I don't think it says much about why people file. I see debtors with, say, a couch from RC Willey, or a washer, or some other 300 dollar item, and 30 or 50 thousand dollars of unsecured credit card debt. It generally wasn't the purchase of the fridge that pushed them over the edge. It was the really horrible financial mismanagement combined with an unexpected job loss or medical emergency.


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