bankruptcy

The companies know exactly what they're doing and they've been profiting wildly for the scams they run on consumers. They are allowed by our laws to charge unconscionable hidden interest rates to unsophisticated people and then bilk them until they're penniless, up to and including garnishing wages and attempting to guilt morning family members into paying off their dead relatives' CC bill (see link).

http://tpmmuckraker.talkingpointsmemo.com/2009/02/how_theresa_hatt_caused_the_financial_crisis.php


The goal of the credit card industry is for you to have a balance every month and to be paying the minimum due on that balance. With the interest rates they charge and the difficulty of declaring bankruptcy, the amount of balance they may eventually have to write off is chump change.

Before the housing bubble burst, the mortgage lending industry made all its profits off of churn. That is, they got paid off the fees for processing and approving the loan application and had no financial stake in whether those home buyers could actually make the payments. (Then the buyers of the mortgages placed side bets on their creditworthiness turning a few-billion dollar problem into a multi-trillion dollar problem.)

People who had filed bankruptcy might have been able to get a low-rate mortgage during the housing boom because of this but I suspect those days may be over. Regardless, to come out of bankruptcy and then go right back on credit is not a good idea.

 

It's a hell of a lot better than bailing out a bunch of fucking power companies whose CEO's get a $250,000 bonus for getting bailed out.

Besides, the majority of people probably spent their last stimulus checks on what you mentioned anyway. At least those who really need the stimulus can have an opportunity to cut down on some of their debt.

 

This is false. PM me for details.

Also, Handsome should do some research on the FDCPA and start recording every collection call including those to your work.

 

I thought the laws had been changed to where you could not go directly to a Chapter 7 filing, but at least had to try Chapter 13 first.