bankruptcy news

witchofthedogs · #21 05-08-2008, 08:00 PM

I tried, by editing the entries above, to clarify the intent of my responses.

Kid Lester · #22 05-08-2008, 08:05 PM

BC...

Can you tell me whether or not declaring bankruptcy will save me from having to keep repaying my student loans?

P.S.

I'm serious.

witchofthedogs · #23 05-08-2008, 08:09 PM

Quote:

Originally Posted by Kid Lester

BC...

Can you tell me whether or not declaring bankruptcy will save me from having to keep repaying my student loans?

P.S.

I'm serious.

I don't (and never have) done work in consumer bankruptcies, but my understanding of the 2005 revisions to the Bankruptcy Code make me think the answer is "no."

Prior to that date, declaring a personal bankruptcy (either Chapter 7 or Chapter 13), got you, the petitioner, out of a lot of obligations. The credit card companies then lobbied Congress to make the obligations of the petitioner much more stringent - you can't "write off" or "get out of" a lot of stuff that you used to be able to simply walk away from (with, of course, a seven year mark against your credit).

Most loans for education are non-dischargable - you'd have to prove hardship and that is a rare, rare occurrence. If you scroll down toward the bottom of the page here, you'll probably get more information: http://www.finaid.org/questions/bankruptcy.phtml

witchofthedogs · #24 05-08-2008, 08:16 PM

And for those of you who are interested, here is a link to a list of the cases that filed in Delaware in 2007 (these are corporate chapter 11 cases only):

Delaware Chapter 11 Filings - 2007 : Delaware Business Bankruptcy Report

And, consider, Delaware is no longer the premier venue of choice for Bankruptcy filings (which we were in the late 1990s and early 2000s)... Many large corporations opt for the Southern District of New York. SDNY along with Delaware comprise, probably, 75% of the annual chapter 11 filings for the nation.

Kid Lester · #25 05-08-2008, 08:17 PM

I kinda figured.

Oh well.

Guess I'll just create another shell corporation representing my family income in the Cayman's and declare myself an employee of the British Commonwealth, and thus not subject to taxes and wage garnishment and any kind of obligations, really.

I just thought declaring bankruptcy might be easier.

Mark Cowherd · #26 05-08-2008, 08:18 PM

Quote:

Originally Posted by boundchaos

I don't (and never have) done work in consumer bankruptcies, but my understanding of the 2005 revisions to the Bankruptcy Code make me think the answer is "no."

Prior to that date, declaring a personal bankruptcy (either Chapter 7 or Chapter 13), got you, the petitioner, out of a lot of obligations. The credit card companies then lobbied Congress to make the obligations of the petitioner much more stringent - you can't "write off" or "get out of" a lot of stuff that you used to be able to simply walk away from (with, of course, a seven year mark against your credit).

Most loans for education are non-dischargable - you'd have to prove hardship and that is a rare, rare occurrence. If you scroll down toward the bottom of the page here, you'll probably get more information: http://www.finaid.org/questions/bankruptcy.phtml

You know it is sad that to be educated, and you can tell Kid is, you have to be in debt forever. I was listening to NPR and this issue came up and I was shocked at the interest rate they are charging.

__________________
So young... so bad... so what?

Reform School Girls 1986

witchofthedogs · #27 05-08-2008, 08:21 PM

Quote:

Originally Posted by Mark Cowherd

You know it is sad that to be educated, and you can tell Kid is, you have to be in debt forever. I was listening to NPR and was shocked at the interest rate they are charging.

You're absolutely right... Unfortunately, bankruptcy declaration - which was meant to help those who truly couldn't pay their debts (ie., businesses went bad, health issues made them unable to work, etc.) and needed help to keep a roof over their head - became a means for people to charge and buy and purchase their way into huge debts, turn around, wash their hands of it, and walk away.

That is the reason that, namely, the credit card companies lobbied so hard for the revisions they got in 2005. Most of the changes to the Bankruptcy Code that occurred at that time affected personal (not corporate) bankruptcy filing. The burdens of proof are far harsher and the ability to discharge any of the debt far harder than they ever were before.

Kid Lester · #28 05-08-2008, 08:28 PM

One of the main things that I will ALWAYS hold Biden, Carper, and Castle accountable for.

(F*%K off, I know I ended a sentence with a preposition)

The friggin' "American" thing to do would be to get Truth In Lending laws in place BEFORE making it almost impossible for people to declare bankruptcy.

But NO

First, you can't declare bankruptcy

THEN, they ratchet up the deception.

Money talks, hard working people walk

The plank

witchofthedogs · #29 05-08-2008, 08:32 PM

One of the funniest things that happened with the 2005 Bankruptcy Revisions was this:

Delaware had the most heavily laden docket in the country for bankruptcies - both consumer and corporate. We had two judges. TWO. The rest of the cases were heard by "visiting" judges from other districts (about four of them) who flew in once a month (each one had a different week) and heard the cases for us.

We desperately needed judges and couldn't get them, because their appointment was held up by Congress and their revisions to the Bankruptcy Code.

When the Revisions were passed, we got four more Judges. But the Code changes were so stringent, we didn't get the filings any more. Plus, in the interim, the visiting judges (who had no ties to this particular District) made rulings that led corporations to NOT want to file in Delaware.

So, we got what we wanted, but far too late to make them useful.

This is the way government works.

Kid Lester · #30 05-08-2008, 08:44 PM

Too bad my plan to be independently wealthy by age 40 didn't work out.

Now I have to line up and take it like the rest of you schmoes.

But, in the end, I still think it's good that the people who make ill-gotten gains off of the work of the middle class get all the tax breaks, subsidies, and corporate welfare.

I'd much rather Exxon/Mobile get a 2 Billion tax break on top of their record profits than fund a head start program.

At least Exxon/Mobile is out there working their ass off to manipulate the oil market.

What the hell is a 3 year old contributing?

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