Comments on: Katrina: New Bankruptcy Law May Hurt Hurricane Victims http://www.outsidethebeltway.com/archives/new_bankruptcy_law_a_problem_for_katrina_victims_-_yahoo_news/ Online Journal of Politics and Foreign Affairs Wed, 25 Nov 2009 01:10:13 -0600 http://wordpress.org/?v=2.8.5 hourly 1 By: Richard Cohen, Centerville, MA http://www.outsidethebeltway.com/archives/new_bankruptcy_law_a_problem_for_katrina_victims_-_yahoo_news/comment-page-1/#comment-56736 Richard Cohen, Centerville, MA Mon, 05 Sep 2005 13:55:39 +0000 http://www.outsidethebeltway.com/archives/11854#comment-56736 Kenneth: your understanding of the bankruptcy law --even the stricter, more punitive form to go into effect 10/17-- is fundamentally incorrect. It is precisely the unsecured deficiency left over after secured collateral is sold (e.g., after a foreclosure sale, after sale of a repo'ed vehicle) which is "discharged". This hasn't changed since the first bankruptcy laws were passed in So. Carolina in 1806. What we will face is the higher hurdles for a debtor to jump to show he is "entitled". The cynical way this new law was bought and paid for by the credit card companies is for another day. For that matter, however, debtors will continue to default as life's events overtake them, subvert their plans, etc., and if the bankruptcy nanny-state overseers decide that a debtor is not "entitled" to a fresh start, then debtors will still be unable to pay, and credit card companies will face overloaded state courts to try to effect collection, people will stop leaving their funds in banks where they can be stripped electronically, they will stop using these dangerous credit cards (not a bad result), and we will all hunker down to low-level financial cat and mouse. passe Kenneth: your understanding of the bankruptcy law --even the stricter, more punitive form to go into effect 10/17-- is fundamentally incorrect. It is precisely the unsecured deficiency left over after secured collateral is sold (e.g., after a foreclosure sale, after sale of a repo'ed vehicle) which is "discharged". This hasn't changed since the first bankruptcy laws were passed in So. Carolina in 1806. What we will face is the higher hurdles for a debtor to jump to show he is "entitled". The cynical way this new law was bought and paid for by the credit card companies is for another day. For that matter, however, debtors will continue to default as life's events overtake them, subvert their plans, etc., and if the bankruptcy nanny-state overseers decide that a debtor is not "entitled" to a fresh start, then debtors will still be unable to pay, and credit card companies will face overloaded state courts to try to effect collection, people will stop leaving their funds in banks where they can be stripped electronically, they will stop using these dangerous credit cards (not a bad result), and we will all hunker down to low-level financial cat and mouse.
passe

]]> By: ken http://www.outsidethebeltway.com/archives/new_bankruptcy_law_a_problem_for_katrina_victims_-_yahoo_news/comment-page-1/#comment-56369 ken Fri, 02 Sep 2005 01:12:08 +0000 http://www.outsidethebeltway.com/archives/11854#comment-56369 What the bankrupcy law says is that those people who had borrowed money against real property, and used the property as collateral for the loan (in other words a regular mortgage arrangement) are also personally liable for the repayment of the loan. The lender no longer needs to be satisfied in just taking back the property; they can now go after other assets and put a lien on the persons future income until the loan is repaid in full. What the bankrupcy law says is that those people who had borrowed money against real property, and used the property as collateral for the loan (in other words a regular mortgage arrangement) are also personally liable for the repayment of the loan.

The lender no longer needs to be satisfied in just taking back the property; they can now go after other assets and put a lien on the persons future income until the loan is repaid in full.

]]> By: Riehl World View http://www.outsidethebeltway.com/archives/new_bankruptcy_law_a_problem_for_katrina_victims_-_yahoo_news/comment-page-1/#comment-56359 Riehl World View Fri, 02 Sep 2005 00:27:23 +0000 http://www.outsidethebeltway.com/archives/11854#comment-56359 <strong>Hurricane Katrina: Blog Relief</strong> Apparently it isn't to early to do genuine analysis as regards issues around Hurricane Katrina - Mr. Snitch is on the job. Please remember it's Katrina Blog Relief Day - charity info here. Outside The Beltway has additional information, some Hurricane Katrina: Blog Relief

Apparently it isn't to early to do genuine analysis as regards issues around Hurricane Katrina - Mr. Snitch is on the job. Please remember it's Katrina Blog Relief Day - charity info here. Outside The Beltway has additional information, some

]]> By: Unpartisan.com Political News and Blog Aggregator http://www.outsidethebeltway.com/archives/new_bankruptcy_law_a_problem_for_katrina_victims_-_yahoo_news/comment-page-1/#comment-56346 Unpartisan.com Political News and Blog Aggregator Thu, 01 Sep 2005 23:50:03 +0000 http://www.outsidethebeltway.com/archives/11854#comment-56346 <strong> Bush Mobilizes a Huge Recovery Effort</strong> President Bush mobilized a broad federal government response to the region devastated by Hurricane Bush Mobilizes a Huge Recovery Effort

President Bush mobilized a broad federal government response to the region devastated by Hurricane

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