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View Diary: The Bankruptcy Bill, Examined (240 comments)

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  •  Well, if that really happens... (3.33)
    then it's good legislation.  The best possible result would be to stop people from living beyond their means.  I really hope you're right and this just blows up in the CC companies' face.  As for hurting the economy, that sort of spending beyond one's means is not sustainable anyway, so any growth that is based on it is also not sustainable.  May as well nip it in the bud right now, rather than suffering the consequences later.  

    That said, I'm not nearly as optimistic as you.  Never underestimate how dumb the average person is, and you'll still never fail to be disappointed.  

    In Britain they admit to having royalty. In the United States we pretend we don't have any, and then we elect them president.

    by Asak on Sun Mar 06, 2005 at 05:35:56 AM PST

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    •  Good legislation? (none)
      Read the whole article.  They want to make it nearly impossible to go Chap. 7, but they refuse to put any kind of restraint on Delaware in return.  People will continue to get these offers in the mail - probably in greater volume than ever - but when they get in trouble, they're twisting in the wind.

      Good legislation my ass.

      What did we do to deserve George W. Bush?

      by republicans are idiots on Sun Mar 06, 2005 at 06:28:45 AM PST

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      •  I was responding to Balthazar's take (none)
        If the bankruptcy legislation really makes it so that people don't use credit cards and don't go into debt because it scares them, then the result (at least to the extent of credit card debt) would be good.  But realistically, I don't see that happening, and of course I think the legislation is crap.  

        In Britain they admit to having royalty. In the United States we pretend we don't have any, and then we elect them president.

        by Asak on Sun Mar 06, 2005 at 06:42:46 AM PST

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        •  Responding to comments (none)
          My point is that everything  in economics happens "at the margins" and if people start to fear credit card the margins it will reduce consumption somewhat.....

          And that could translate into a percent or two off growth.

          I worked in the bankruptcy courts for a while and I know that medical bills and divorces etc are a factor.... but for the most part bankrupts are people with good jobs and good incomes....or at least they had good incomes at some point.....  Some are people whose businesses failed...they are a bit different.  Business failures are often related to the economy.  Not poor budgeting habits.  

          The poor really can't get enough credit to get into trouble with debts....  And no creditor really likes to chase poor's too costly to hire people to do this kind of work with little hope of a payoff...

          Bankrupts also tend to be a little bit "scatter brained" as a group.... Somehow they "didn't see it coming" or they had the ability to distract themselves away from the impending disaster.....  But every case is a little different...

          If the new law passes, there will be horror stories about it on TV, and THEN people might get a bit scared about using credit cards......

          And remember those high wage workers who will now be "paying off old debts" won't be going to the malls as much!  And they are our "big spenders" for better or worse!

          More Content, Less Chat.

          by BALTHAZAR on Sun Mar 06, 2005 at 07:50:21 PM PST

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