Bankrupt and Swamped With Credit Offers

[Rose Siding]

snip>
"One day they owe $50,000, the next day, nothing. What better person to lend money to?" Leonard said.

That's certainly the pitch of one database firm, NewLeadsUSA, which sells lists of bankrupt consumers and businesses from publicly available data. "Opportunity knocks after life's hard knocks," the NewLeads Web site says. "Bankruptcy means a new financial life for many businesses and consumers. Be among the first to reach this unique and lucrative market."
....
Consumer advocates say these offers could increase under a new bankruptcy law approved by the House yesterday by a 302 to 126 vote. The measure, already approved by the Senate, would make it more difficult for consumers to wipe out their debt through Chapter 7 bankruptcy. White House aides have said President Bush will sign the measure pushed for nearly a decade by credit card and retail industries. Proponents say the changes are needed to end abuses by people who shirk their financial obligations.

Under the legislation, debtors who file for Chapter 7 bankruptcy court protection will not be able to get any future debts dismissed for another eight years. That in itself will make filers a more attractive target for credit solicitations, said John Rao, a staff attorney of the National Consumer Law Center, one of many consumer groups that fought the bankruptcy bill. "The problem is that credit card companies will have an even greater incentive to encourage recent bankruptcy filers to incur new debt, knowing that this debt will be safe from any possible bankruptcy discharge for a longer, eight-year period," Rao said.

http://www.washingtonpost.com/wp-dyn/articles/A54745-2005Apr14.html

[Fire Walk With Me]

1. Get in debt again? Why, thank you!

[MeinaShaw]

7. Been there, Done That. Change my lifestyle, Very Happy Now

The day I took all my savings and paid off all my credit cards was the best day of my life. It changed it. I had to start saving all over again, so I cut back everything. Yanked the TV cable, stopped using all the appliances, starting eating good food instead of eating at restaurants to save money.

Along the way I found that I felt better, ate better and live better. Now while my neighbors complain about $350 electric bills, I laugh at my $50.00 electric bill.

[smirkymonkey]

2. Am I missing something, or is this really fucked up?

Eventually, it's going to be like getting blood from a stone - even if the person can't file bankruptcy, if they can't pay, they can't pay.

[Fire Walk With Me]

3. Most of what they've been doing are set-ups

So what's the ultimate desired outcome? (Genuine) wage slaves?

[frankly_fedup2]

5. That's when they take your home, or if not your home your fridge,

stove, TVs (if any); your car if you own any even if it does not run. That is unless you live in Florida. That is why OJ Simpson moved there. In Florida if you file bankruptcy, they cannot take your home. They cannot touch your retirement either. O.J. gets $25,000.00 a month in retirement from the NFL (WOW), and even though he has a $33 million dollar civil suit that he lost where he was found guilty for the murder of his ex-wife and the young man, they cannot touch it.

My husband and I were able to get into our 401K for emergency purposes and we decided to take out around $7,000.00. We figured that would pay for the bankruptcy filing and give us money to live on until my disability came through. We thought that since it was out of our retirement fund, it couldn't be touched. WRONG! Once we removed it out of our retirement 401K, it was no longer considered retirement (per the judge) and so the attorney for the creditors took it all and divided it evenly (after her $700.00 charge for her paperwork and hard work, puhleaseee) among our creditors, which means they all got like a little over $100.00. Woo-Hoo . . . I bet they were thrilled. They got a measly amount each; however, that money could have helped us to just exist until my disability kicked in.

The only thing you cannot file bankruptcy on (even b4 this new law) was anything owed to the IRS or child support. That's it.

Another hysterically funny thing about filing for bankruptcy is you have to get an attorney and pay him $600-$750+ to file. Now that is a joke when you are already broke.

I want to say to all of those that voted in favor of this bill that I hope they never get an illness that causes them to become disabled, lose a yearly income of $35-$40 thousand a year, husband makes $50+ a year. Together, we were doing okay; however, I got sick and can no longer work. I get $920 a month disability. I know, better then nothing. However, I have paid into it all my life.

"NO ONE IS PROMISED TOMORROW." You never know when life is going to throw you a curve. Also, I wouldn't wish what my family has gone through due to my illness on my worst enemy.

So what I would like to tell everyone that voted for this new law, I hope you are always as well off as you are now, because if something devastating happens in your life, you might have to feel the utmost humiliation of going through bankruptcy. It was one of the worst experiences of our lives.

[smirkymonkey]

9. I am so sorry to hear of your experience.

What a nightmare! It makes me physically ill to hear that people are being treated like that while the fat cats turn people's tragedys into another opportunity to make a buck. :grr:

[leesa]

6. I don't know...enlistment in the armed forces? Debtor prisons where they

become slaves? THIS is the dream of the rich elitists. This is how our country was built, on the backs of debtor slavery and black slavery. Read Howard Zinn's 'A People's History of the United States' You will be amazed at the numbers of debtors and black slaves at the very start of this country.

THIS is what they want, WAKE UP!

[SoCalDem]

11. The same people who called and harrassed my friend BEFORE

she filed, called her afterwards and offered her the same damned cards again..She declined:)

[whistle]

4. Right, they can't go bankrupt again for at least seven years....

...so they have to pay up.

[Geekscum]

10. Not always

A friend of mine from high school beat the system. He maxed out his cards to the tune of $100000 (how the heck you get $100000 of credit when you make $45000 is beyond me). Took out lones on everything he had and then move to live in his wifes country, Costa Rica. Did you know with that kind of money and a small job you can live well for the rest of your life south of the border?}(

[LiberallyInclined]

8. under the new laws, i didn't think that credit-card debt is excused-

so the filers under the new laws won't have the same "clean slate" to start with...
but then again...if credit-card debt isn't excused- all the more reason to get those plastic hooks in...

this is going to get really ugly in the not-to-distant future.