Hey buddy can you spare a dime?  

Philosophy_N_Sex 49M/47F
1147 posts
10/17/2005 7:36 pm

Last Read:
3/5/2006 9:27 pm

Hey buddy can you spare a dime?

Song of the day: Money money money ‒ Sly and the family stone

Today Monday the 17th a new bankruptcy law goes into effect. The Consumer Protection Act, which as been lobbied by the Credit Card/Banking industry for nearly 10 years and got closer to passing each time, until this spring when is passed easily.

Pundits in favor of the bill say this will lower interests rates because it is much more difficult to get debts “charged off.” Should your income meet a “means test” you are unable to file a 7, and must file 13. This will stop “dead beats” from being irresponsible.

Pundits against the act say a huge majority of bankruptcy filers are those who lost substantial income due to job loss, high medical bill due to less insurance or down sizing. This punishes the poor because it by making it more expensive to file. You must also attend a mandatory accredited credit counseling course, thus adding to the cost, pulling people away from work, and increasing childcare costs. The lists of assets are based on replacement value, not current true market value, and thus inflate assets in the eyes of the court. The income means test averages in the previous six months income. Should someone with executive income suddenly be flipping burgers, the bankruptcy court sees high income, not current income, thus very little help. Many people will just dodge the creditors, and hope judgments can’t be enforced, or just go under ground. Finally they assert that 100 a month disposable income is not enough to consider.

Personally I was looking over the part of the bill that defines what a business is and is not. Being a small, and I do mean small businessperson. I am not eligible for protection I am not big enough. I was not planning on financing to start the business so if I am not profitable I leach from the house, not run up debt. I can see how people would just open fake small businesses run up bills and run away. However is not a business entity an entity?

Also there are risks for investments. When the average Joe loses money, they say that’s life. When big business loses money on investments, no can’t have that! Also I see big business weaseling out of paying their fair share as bad if not worse that John or Jane Doe. Look at the Enron thing, who went to jail for that? If you or I pulled the same crap even on a small scale, it would be prison time. I do not dispute the fact that if you say you will do something, do it! You owe it pay it! However there are circumstances where your best wont make it.

I am glad I have no credit cards any more. My check card has a major logo and works just fine for reserving rooms and such, still makes it so I can write off expenses. The credit card industry wants to treat customers this way, they can keep their cards, and I will keep my interest money for myself.


rm_philonymph 38M
162 posts
10/17/2005 11:23 pm

ugh....the money war goes on and on.........

I does piss me off considerably that those with more money always have more weapons at their disposal to protect it, and those of us who barely get by on the little we have are like a naked man in an open field who's trying to fend off the tanks with a pea-shooter.

I still insist that the only way that the power of money can diminish is by not using it in the first place. say goodbye to the Almighty Buck?


Philosophy_N_Sex 49M/47F

10/18/2005 11:43 am

Philo
Yes it has always been about money, and those who have it havign absolute control. "we the People" seem to allow this, off to check your story.


rm_jayR63 59F
1884 posts
10/18/2005 5:09 pm

Like you, I only use my (major credit card)check card.
Instead of changing the bankruptcy requirements, George and his posse should be looking into the way the credit card companies operate. They give those cards away like candy and in that fine print are the hidden usury fees.

But that is one investigation that will never happen.
We know who Georgies friends are.
How else did this puppet get into the White House?


Masseur_0 41M

10/18/2005 6:28 pm

The Consumer Protection Act, I believe, is a euphamism for war against the poor. Only the small folk are to be effected by this. Ironically, credit card debt is no longer the main reason for filing but now medical bills is #1. The wealth gap widens further. And now we have to be sentenced to credit counselling. Has anyone studied the success rates of these, unregulated mind you, organizations? They are dismal. They are almost as bad as the IMF in success rates (IMF is currently running at a success rate of 9.
I've spoken to lawyers who are furious of these new laws which will make much more work for them and more classes for them to take to learn all this garbage. THis was not a law passed by lawyers.
Another interesting tidbit is that American people fought fiercely against this bill. Much lobbying went into this on the part of the consumer and politicians just didn't listen tnhis time around...Too baad for them. I don;t think I'll be able to afford to vote for my senator next election.

OK OK,,enough of the blathering....so how was your day?


funtimesforher 41M
11 posts
10/18/2005 7:54 pm

I agree with jayR63.

Credit card companies and banks should be the target of reform. Did you know that you can now get a 50 year mortgage. Lets be real, chances are that if you have a 50 year mortgage you will never own that home.

Great topic.


patsam69 51M/51F

10/19/2005 4:15 am

I get about 3 (NOT Kidding) credit card applications in the mail every day. It's ridiculous. Have been in the credit card debt hole...but bankrupcy did not enter my mind. I made the bed...gotta lay in it. Why should it get wiped away for me? Many, many people do it...so a change was in order. If it will be for the better...probably not. we shall see.


Philosophy_N_Sex 49M/47F

10/19/2005 12:55 pm

JayR:
I see you are a big fan of King George II. Funny how it was a Republican President who said “government of the people by the people and for the people,” how times change. Did you know credit card companies have an arbitration clause in the contract, removing your right to sue in court? Gurrr! I know what NOT in my wallet!!

Masseur:
Yes it is true and provable fact that medical bills cause personal bankruptcies. Garnish a 10-dollar an hour job, right. Yes the credit card companies created these “debt counseling” firms. They say they are not for profit, that is bogus! Yes every consumer group fought against this “law” but you are right, the politicians did not listen to the people, they listen to the money. Say Tom Cruis said " Show me the money!

Funtime
50-year mortgage?? Oh lets see the interest on that. Oh yeah interest is paid first before you start on the principle. Might be better than renting, if you live in a place that property values increase, maybe? Graduate college at 24, house is paid at 74, average lifespan is 78 for men… Hummm.

Sam
You are the type to take responsibility fro your actions, and are to be commended. Plus you are just plain cool! Also you were healthy and could work to pay the bills, and did not have medical misfortune that removed your ability to work, and piled on bills.


digdug41 49M

10/19/2005 1:13 pm

WOW yall all just proved to me that I dont know squat about this at all but thans to phil and these comments I have some idea. no credit cards for me lol

roaming the cyber streets of blogland


patsam69 51M/51F

10/20/2005 5:50 am

I understand the medical misfortune aspect of it , being in health care...but I personally know a couple of people who did it just to get rid of their credit card bills...and they both acted like they deserved it! If you run up those bills, it is YOUR responsibility to pay them...no one else.


Become a member to create a blog