So if someone looses their Job and they owe $50,000 and cat pay

[Quixote1818]

on the loan because they can't even make pay for food then what happens? Do they just default on the loan? Will they be arrested? How do they enforce the payback of the loan?

[serryjw]

1. Do you have any assets?

house? investments? If you don't what are they going to do...In the US we do not have debtor's prison....YET!

[Quixote1818]

2. No I don't have any debt and I am employed. I just heard Mike Maloy

say something down this road and didn't catch the whole thing. He basically put it that nothing really changes because if people cant pay they cant pay but I only caught the end. What did I miss?

[Jamison]

3. What they can do...

The loan distributor can take you to court (Civil) and there, your assets could be liquidated, and if that's still not enough, your wages at your current or future job could be garnished. You don't have to worry about jail tho (yet, Bush hasn't got around to opening the gulags for debtors).

[blogbear]

7. And Possibly The Return Of Debtors Prison As..

Once Existed In The Empire Of Briton..Remember? From What I've Been Reading It Seems We Could Be Headed That Away..I'll Bet Bushie Doesn't Want The Sun To Be Able To Rise Or Set On His Amassed Fortunes..One Way For Him To Accomplish That Is For Him To Get Us And Our Heirs To Pay, Pay, And Then Pay..What Is Your Take On This?

[zann725]

4. I think that's where the Repug's are "headed" with this. Debtor Prisons.

...where they can get not just cheap labor, but FREE labor...with NO parole.

I would NOT put it past them.

[Selatius]

5. No, debtor prisons are too obvious; they just want to cripple people

If you can keep a man down because of what he owes by garnishing his wages and taking away everything he has, there will be no need to physically restrain or confine him. He will already be reduced to an economic slave, and many, I fear, would rather live quietly in slavery than fight violently and draw attention by resisting. Look at the good Germans who didn't resist the Nazi Party. Look at the Americans who continue to go along with Bush even though he has done tremendous harm to them.

It is a prison of the mind--a prison built out of fear and despair, not brick and mortar.

[Enquiringkitty]

6. You a e so right..imprison the body and the mind is still free...

imprison the mind and you own the body. The basis for brain-washing...grab them with fear, sorrow,an intense belief system (as in cults) and you have them. This campaign began with shock(9/11) and moved quickly to fear, focused on Iraq and moved to revenge, now fear is brought back...fear for the future and all through this you have the one figure who can and has provided and answer to the fear, anger, revenge....Bush.

Brain-wash the ones who willingly follow(Repugs) and imprison the minds of those who didn't follow by taking everything they have to rely on and break down their morale...take away their hopes.

Sad but true that we speak of fellow Americans.

[TomClash]

8. And if the Dems don't speak up about this . . .

. . . a movement headed by others will. And it willl be a hideous movement called national socialism.

[superconnected]

9. this will hurt the republicans more than the dems

honestly guys, republicans are idiots.

Sure there are a lot of dems in debt too. But everyone I've ever met without debt are dems. The repugs are the ones I know most likely to be driving the suv they are making payments on and living in the house they can't afford if they lose their jobs.

sure some dems are doing this too but really, ALL the repugs I know are doing it.

I just think they carry far more debt AND are more likely to lose their jobs for being jerks to be around, so the first people to cut.

The dems will survive and will learn from their mistakes, the repubs aren't bright enough to learn. They'll make up most of the debtors prisons when they come.

[regnaD kciN]

10. Part of the problem, though...

...is that most (or at least half) of all bankruptcies are not because of irresponsible spending or running up the credit cards on luxuries. They're from family medical emergencies...and, in most cases, that's even with employer-supplied medical insurance.

See, there's a double-whammy here. Insurance companies, big pharma, and the medical establishment are driving up costs so that you pay more and get less in coverage. So, it's entirely possible for you to be paying more and more in insurance premiums and, if a member of your family gets a serious illness that requires major treatment (cancer, say), you may "max out" your insurance coverage and have to foot the rest of the huge bills yourself. In the past, the common way to get out of that situation would be to file Chapter 7. Sure, your credit would be screwed for quite a while, but you would at least wipe out your medical debts. Now, it will be possible for the bankruptcy court to insist that you file Chapter 13 instead of Chapter 7, which would mean liquidating your assets and still having to pay into the indefinite future.

Unfortunately, illness is no respecter of party affiliation...nor of how frugal or responsble one has been in handling one's finances.

:-(

[SoCalDem]

11. If you cannot pay, you cannot pay, BUT

the debt never gets "discharged". It just sits there festering, waiting for you to get another job.. The CC companies "sell" the debt to collection agencies who basically get to keep most(or all) of what they collect, and they will no longer be barred from hounding you FOREVER...

Since you "owe" them money, they will no doubt be able to "attach" your accounts, and will troll them constantly, so you may be bouncing checks because THEY took money out of your account.

So if you must bail, be prepared to:

operate without a checking/savings account (until the law changes)

pay higher car insurance rates, since they will all be pulling regular credit reports, and can legally charge more to "deadbeats"..

lose out on decent rentals, because you will be labeles a "deadbeat" and no one will want to rent to you.

have them calling you ALL THE TIME, becasue you can be sure there is a loophole to the "do not call" law if you OWE them money..

Tell your friend to declare BEFORE the law goes into effect Oct 1.