<![CDATA[Consumer Bankruptcies Up Nearly 50% From A Year Ago - Consumerist Comments]]> <![CDATA[Consumer Bankruptcies Up Nearly 50% From A Year Ago - Consumerist Comments]]> <![CDATA[Consumer Bankruptcies Up Nearly 50% From A Year Ago]]> if you are not going to let me post please delete my account

captainleah

]]> <![CDATA[Consumer Bankruptcies Up Nearly 50% From A Year Ago]]> @m4ximusprim3: Yes, under current bankruptcy law in America, bankruptcy means free money. Even with their "reform".

@chrrey103: LOL I was just going to post along the same lines... a great case of banks screwing themselves. They lobbied hard for the BKL reform laws, claiming that people abused the system. And they were mostly right. But then right after the US legal system gives them a lifeline, they go and squander it by loaning billions to people who had bankruptcy written all over them.

lolcat sez: "IM IN UR BANKZ, LAUGHIN AT UR BANKRUPTCIEZ"

humphrmi

]]> <![CDATA[Consumer Bankruptcies Up Nearly 50% From A Year Ago]]> @chrrey103-absolutely correct.When did they make it harder to file for bankruptcy-2004.Not only did interest rates go up on stuff like sub prime there has been a slow steady increase in credit card rates as well.

u1itn0w2day

]]> <![CDATA[Consumer Bankruptcies Up Nearly 50% From A Year Ago]]> @Pro-Pain: So I'm to understand that bankruptcy means more free money?

I am intrigued by your ideas and would like to subscribe to your newsletter.

m4ximusprim3

]]> <![CDATA[Consumer Bankruptcies Up Nearly 50% From A Year Ago]]> @thufir_hawat: Sure - it was protecting responsible consumers like myself from getting stuck with a bill from the irresponsible.

Erwos

]]> <![CDATA[Consumer Bankruptcies Up Nearly 50% From A Year Ago]]> The chart from ABI is pretty self-explanatory. In the runup to the BAPCA* taking effect, people filed in large numbers out of fear that they would not be eligible for protection anymore (fear, by the way, that the lawyers did not dissuade). Immediately after, filings fell to a trickle. Now that reality has set in -- along acceptance of the 0 dividend plan -- they are on the rise. Filings will level out before long. Which is why it is called equilibrium.

*2005's Bankruptcy Abuse Prevention and Consumer Protection Act (was it the consumers who were being protected? really?)

thufir_hawat

]]> <![CDATA[Consumer Bankruptcies Up Nearly 50% From A Year Ago]]> Credit card companies know they are forcing people into bankruptcy when they hike up the interest rates to 30% after a missed payment. These companies also know that the newly bankrupt can't file again for another 4 or 8 years and thus fill their mailboxes w/ offers w/in two weeks of discharge.

I expect the filing rate to continue to rise as people realize that they can in fact still file for bankruptcy. In our economy people are encouraged to spend and keep spending beyond their means (by the banks, credit card companies, president, etc.). Unfortunately, when the economy is this slow, the bankruptcy filings will rise.

scientician

]]> <![CDATA[Consumer Bankruptcies Up Nearly 50% From A Year Ago]]> I filed for bankruptcy (chapter 13) in April. Had no contests at the hearing with the trustee and creditors stopped contacting me until last week...

Got a letter from Citibank stating that I still owed them money even though I had filed and they did not contest the claim.

The final hearing was May 1... My attorney said if I hear from them after that date it's considered harassment. I got an email from Citibank today.

bloodomen13

]]> <![CDATA[Consumer Bankruptcies Up Nearly 50% From A Year Ago]]> @bohemian: The creditors may realize they'll be cash strapped too if people get lax about paying up. Look what carefree credit hath wrought.

chrisjames

]]> <![CDATA[Consumer Bankruptcies Up Nearly 50% From A Year Ago]]> I just filed bankruptcy on Friday. Today I'm off to get a new can and fill out some credit card apps! WOO HOO!!

Pro-Pain

]]> <![CDATA[Consumer Bankruptcies Up Nearly 50% From A Year Ago]]> @chrrey103: I am sure it was a calculated move.

The ironic thing is that people are cash strapped right now yet their creditors will probably ramp up collection efforts and push more people into bankruptcy. That is sort of counterintuitive.

bohemian

]]> <![CDATA[Consumer Bankruptcies Up Nearly 50% From A Year Ago]]> @chrrey103: Yes, anyone with half a brain saw this coming.

Erwos

]]> <![CDATA[Consumer Bankruptcies Up Nearly 50% From A Year Ago]]> I find it inetresting that right after they made it harder to file bankruptcy for individuals all he!! broke loose. I think someone saw this coming.

chrrey103

]]> <![CDATA[Consumer Bankruptcies Up Nearly 50% From A Year Ago]]> @zentec:

I don't agree with your timelines. US banks have aggressively written down debt-backed assets; unlike Japan's debt crisis in the early 90's, the US appears to be taking the medicine all at once as opposed to bit by bit. The subsequent lack of liquidity has begun a destructive adjustment process, but commerce will have to rapidly adjust to the new environment.

How fast will consumers change behavior? How about never? They're always addicted to available debt. The key is restraining liquidity that cannot be supported, which the markets have done FOR the consumer.

Capitalism is awesome.

ADismalScience

]]> <![CDATA[Consumer Bankruptcies Up Nearly 50% From A Year Ago]]> Doesn't seem like such a hot idea to make all those credit card offers and easy refinance terms on mortgage and equity lines...for either party.

The next 20 years will be spent paying for the illusion of prosperity of the past 10 years.

zentec

]]> <![CDATA[Consumer Bankruptcies Up Nearly 50% From A Year Ago]]> Not really surprising. Even if it's more difficult to become bankrupt, job losses/mortgage crisis/inflation in USA are big factors in personal bankruptcy.

Victo

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