Bankruptcy

April 14th, 2005 by Editor B

I guess it’s a good thing I filed Chapter 7 back in 1997, because it looks like Congress is finally tightening up the bankruptcy laws.

This sucks. This will hurt people who are already hurting. It only helps big money. When will the people rise up and demand justice?

I’m in favor of any reform that holds corporations accountable for their actions. If this legislation closes any such bankruptcy loopholes, so much the better. But Chapter 7 is for personal bankruptcy, not corporations. And most people end up filing for it because of serious illness or loss of employment. Putting the screws on those folks is what I object to.

For the record, I’d like to note that my bankruptcy ended up being a very good thing for me. J and I amassed roughly the same amount of credit card debt during the early production-intensive years of ROX. I should never have been extended that much credit in the first place. I was young and naive and made $100 a week or less. But I got all these credit cards because I’d gone to college. Before I knew it I had $20,000 racked up — mostly from living expenses. J ended up working his debt off, paying every last penny whereas I filed for bankruptcy. Now look at us. We’re both home owners, both productive members of society — but J is up to his eyeballs in credit card debt again, whilst I have sworn off credit cards entirely. (Well, we keep one for emergencies, but we never carry a balance.) OK, that doesn’t really have anything to do with anything. I just thought it was ironic. I’m hardly a poster boy for this issue.

The new law removes a safety net that was there for people who suffered some big setback. That’s bad news for most of us, and good news for big financial companies.

2 Responses to “Bankruptcy”

  1. lemming Says:

    During one of the hearings on this bill, someone lobbying against it pointed out that medical bills could and do easily drive families into bankrupcy. The Congressman cut her off. “We’re not here to debate medical bills.” Without missing a beat she replied, “This discussion is relevant to both topics. I’d be happy to discuss medical bills at another hearing, too.” The Congressman replied with a sneer that he was sure she would, and added a derogatory remark about academics.

    (scream)

  2. David Says:

    It’s interesting because apparentley corporate bankruptcy has existed for hundreds of years. (My understanding comes from NPR.) Personal bankruptcy seems a natural, egalitarian extension of an old practice. Of course, it is undoubtedly that very egalitarian quality that makes it so resented by some.

    B, remember what I said the true objective of the Right is? Making everyone but the very wealthy vulnerable and potentially desperate. Is this law consistent with my prediction?

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