Monday, September 22, 2008
Finally they are paying too
I thought this article was interesting being that millions of Americans are suffering from the burst of the housing bubble. Lenders were giving too much money to people they knew could not pay it back knowing that upon foreclosure they would still have a win win situation because houses always appreciated in value. I am happy to see that they are getting what they deserve with these new bankruptcy laws.
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3 comments:
Bankruptcy reform was long overdue. Previously, there was alot of abuse by debtors who were able to get all of their unsecured debt (and sometimes secured debt too) discharged in a Chapter 7. Then, they would start with a clean slate and were free to become indebted again.
I totally agree with Kim. I have come across a few people in my life that have abused bankruptcy at least 2 times. With the new laws, it will make people think twice when charging up their debt.
I like the fact that it's harder for people to abuse bankruptcy, but I hate to hear about people losing their homes because they truly can't work due to medical problems. For people who do not have health insurance, one accident or illness can wipe you out, making it impossible to climb back up.
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