Credit card debt…next shoe to drop?

[Sunnyjim]

The original BK reform bill did indeed exempt credit card debts from being disharged in Ch. 7 BK. The final bill that was passed does not NOT exempt credit card debt from disharge.

In general, all unsecured debts may be discharged in a Ch. 7 BK proceeding except for certain public obligations such as taxes, judgements, and child support, etc.. Secured debts (like car loans) are usually dealt with by liquidating the asset and then the remaining balance due (if any) is discharged as an unsecured debt.

I am no attorney and so don’t base ANY decisions on the above statements. But I stayed at a really great hotel last night… (couldn’t help making a funny…). No, I was just curious about the actual changes to the BK laws and browsed through a “Dummies Book” for the new laws. Easy for anyone to verify via google or at a site like this:

http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/process.html

[kewp]

I’m reasonably certain folks are just loading up as much debt as they can while its available; with no plan of ever paying it back.

[kewp]

I’m reasonably certain folks are just loading up as much debt as they can while its available; with no plan of ever paying it back.

[kewp]

I’m reasonably certain folks are just loading up as much debt as they can while its available; with no plan of ever paying it back.

[kewp]

I’m reasonably certain folks are just loading up as much debt as they can while its available; with no plan of ever paying it back.

[kewp]

I’m reasonably certain folks are just loading up as much debt as they can while its available; with no plan of ever paying it back.

[jpinpb]

I guess if you’re going to walk away from your house, mar your credit already, might as well turn in the SUV that you can’t sell and max the credit cards and file Chapter 7 then. Why not. Seems it’s the American way. Pathetic.

[jpinpb]

I guess if you’re going to walk away from your house, mar your credit already, might as well turn in the SUV that you can’t sell and max the credit cards and file Chapter 7 then. Why not. Seems it’s the American way. Pathetic.

[jpinpb]

I guess if you’re going to walk away from your house, mar your credit already, might as well turn in the SUV that you can’t sell and max the credit cards and file Chapter 7 then. Why not. Seems it’s the American way. Pathetic.

[jpinpb]

I guess if you’re going to walk away from your house, mar your credit already, might as well turn in the SUV that you can’t sell and max the credit cards and file Chapter 7 then. Why not. Seems it’s the American way. Pathetic.

[jpinpb]

I guess if you’re going to walk away from your house, mar your credit already, might as well turn in the SUV that you can’t sell and max the credit cards and file Chapter 7 then. Why not. Seems it’s the American way. Pathetic.

[dharmagirl]

The real question is – apart from our mutual disgust – is WHAT effect WILL this have on the economy? What if the housing bubble is followed by a collapse of credit card debt on Wall Street?

In the NPR interview Joe said a credit card problem wouldnt be nearly as bad as the housing collapse….but still…

I used to tease my “depression era” father about the way he never threw things away, and kind of had a money under the mattress approach to finance…the truth is, his entire generation was SHAPED by the Depression.

Maybe it will take a cataclysmic event like that to change the mindset of an entire generation….to wean them off the teat of easy credit, living beyond their means, etc?

I am not an economist, but if HELOCs are gone, and credit becomes harder to get – esp for defaulters – will many people be forced to live on the money they actually earn?

That would be shocking.

[dharmagirl]

The real question is – apart from our mutual disgust – is WHAT effect WILL this have on the economy? What if the housing bubble is followed by a collapse of credit card debt on Wall Street?

In the NPR interview Joe said a credit card problem wouldnt be nearly as bad as the housing collapse….but still…

I used to tease my “depression era” father about the way he never threw things away, and kind of had a money under the mattress approach to finance…the truth is, his entire generation was SHAPED by the Depression.

Maybe it will take a cataclysmic event like that to change the mindset of an entire generation….to wean them off the teat of easy credit, living beyond their means, etc?

I am not an economist, but if HELOCs are gone, and credit becomes harder to get – esp for defaulters – will many people be forced to live on the money they actually earn?

That would be shocking.

[dharmagirl]

The real question is – apart from our mutual disgust – is WHAT effect WILL this have on the economy? What if the housing bubble is followed by a collapse of credit card debt on Wall Street?

In the NPR interview Joe said a credit card problem wouldnt be nearly as bad as the housing collapse….but still…

I used to tease my “depression era” father about the way he never threw things away, and kind of had a money under the mattress approach to finance…the truth is, his entire generation was SHAPED by the Depression.

Maybe it will take a cataclysmic event like that to change the mindset of an entire generation….to wean them off the teat of easy credit, living beyond their means, etc?

I am not an economist, but if HELOCs are gone, and credit becomes harder to get – esp for defaulters – will many people be forced to live on the money they actually earn?

That would be shocking.

[dharmagirl]

The real question is – apart from our mutual disgust – is WHAT effect WILL this have on the economy? What if the housing bubble is followed by a collapse of credit card debt on Wall Street?

In the NPR interview Joe said a credit card problem wouldnt be nearly as bad as the housing collapse….but still…

I used to tease my “depression era” father about the way he never threw things away, and kind of had a money under the mattress approach to finance…the truth is, his entire generation was SHAPED by the Depression.

Maybe it will take a cataclysmic event like that to change the mindset of an entire generation….to wean them off the teat of easy credit, living beyond their means, etc?

I am not an economist, but if HELOCs are gone, and credit becomes harder to get – esp for defaulters – will many people be forced to live on the money they actually earn?

That would be shocking.

[Author]

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