Bankruptcy Reform: Designed To Protect Big Business
Who will benefit from the new bankruptcy reform laws? The financial services industry and other big business groups, that's who.
These groups contributed millions of dollars to elect Bush and other Republican candidates in 2000 and 2004, with the goal of overhauling the bankruptcy system. They and other big business groups have continued to spend millions, rage arguments and lobby persistently for bankruptcy reform. In March 2005, with the House and Senate loaded top heavy with Republicans, they succeeded.
The financial services industry includes the banks, credit unions, the American Bank Association, credit card companies and retailers.
Big business groups pressuring for legislation include auto makers such as the Ford Motor Company, General Motors, and DaimlerChrysler. These groups were willing to pay millions of dollars and spend many years lobbying for bankruptcy reform. The car makers, unhappy with the way auto loans are handled when an individual files for bankruptcy, pushed for reform.
Others who lobbied heavily for reform were car dealers, record labels, and gaming interests such as casinos, many of whom represent large corporations and prime lenders, such as MBNA Corporation and American Express Company, who contributed millions not only to stack the political odds in favor of the bankruptcy reform bill, but to elect candidates sympathetic to their goals. MBNA Corp. and American Express Co. are among the top beneficiaries of the bankruptcy reform.
Bankruptcy reform supporters argue that debtors seeking relief through bankruptcy are either purposely gaming the nation's bankruptcy system or they are irresponsible spenders who should pay at least a portion of their bills if they are able to. In fact, about half of the claims filed for bankruptcy are attributed to medical costs.
Bankruptcy reform will require most filers to receive credit counseling and lessons on how to improve their financial management skills. Bankruptcy reform states that filers pay for the counseling themselves.
Included in the new bill is a provision requiring that credit card billing statements include an example of the time it would take to pay off the balance at a particular rate of interest. Billing statements are also required to supply a toll free number for the consumer to call and inquire about the length of time it would take to pay off the balance if they are only making the minimum monthly payments.
Citizen advocate Suzanne Arthur highly recommends the Repair Bad Credit Newslog, for news and further information on consumer debt and repairing credit scores. Go to: Bad Credit Repair Newslog
Should You Invest In Savings Or Payoff Your Debts?
I have faced this financial question 8 years ago and recently I have friends asked me this same question. I think I should write it up so that it may help some of you that having the same situation.The decision whether to invest your monthly excess cash into savings account or paying off your debt is a tough one.There are few factors you need to consider before you make the decision and I listed them down here to help you make an informed decision.(1) Rolling or fix installment credit accountAn example of your ro...(related: Debt Relief)
Bankruptcy Reform: Designed To Protect Big Business
Who will benefit from the new bankruptcy reform laws? The financial services industry and other big business groups, that's who.These groups contributed millions of dollars to elect Bush and other Republican candidates in 2000 and 2004, with the goal of overhauling the ...(related: Debt Relief)
Are You Beating Up On Yourself About Debt?
When you hear the word "debt", whats the first thought or feeling that comes to you? For most people debt is "bad" or it becomes the "enemy" and is something that should be avoided like the plague.Having debt does not make you a bad person. The more a situation is judged as being bad, the worse it gets. It's the judgement that you have ar...(related: Debt Relief)
Life After Bankruptcy
Bankruptcy and Credit - What Happens After Your Debts Are Discharged?Bankruptcy will remain on your credit report for ten years. But you may be able to get credit fairly quickly - almost immediately after a bankruptcy - although you will pay dearly for it.Due to anomalies in the credit scoring process, you're likely to have a better score than you had while you were struggling with debt. Also if you handle debt responsibly from then on, you will find your credit score will be close to prime within a few years.Credit scoring gives more weight to more recent events. So if you use of credit is down and you're handling your debts responsibly, you score will go up. Remember you have to use credit to get a credit score.Many lenders love to extend...(related: Debt Relief)
Whatever You Do....dont Save Money!
No, that's not a misprint. Even though falling interest rates are good when you want to get a loan, they are bad for people with savings accounts.In this economy your best investment, the best place to put your money is into paying off debts. Think of it as investing in your debt because that is exactly what you are doing.If you put $1,000 into a bank savings account earning 2%, at the end of a year you will have $1,020.If you carry a $1,000 balance on a credit card with a 19% interest rate, and you pay the minimum monthly payments, at the end of one year you will have paid $190 in interest.If you get $1,000 in a tax refund, small inheritance or from somewhere else you now have a choice to make. You can earn 20 bucks in a...(related: Debt Relief)
Dealing With Thingitis
Debt is quickly becoming an epidemic in America. However, through the past 50 years, America has not seen such large domestic growth. Its citizens have higher salaries now than their predecessors, yet personal debt continues to rise.Why is this happening? I believe that the number one reason of incr...(related: Debt Relief)
Learn The 15 Debt Elimination Steps You Must Take Immediately!
What Everybody Needs To Know...Learn The Truth About Debt Elimination in 2005!Here`s how we have been taught to charge, charge, charge and promised Easy monthly payments by advertisers who seduce us into debt. So its no accident that the credit, finance and loan companies end up with most of our money, while we end up with all of the bills.Debt Elimination tips shows how Millions of Americans are living on the edge of financial disaster surviving only on the hope of next week's paycheck. The average American is dying under a load of debt, with little or nothing building in the bank or in investments.Debt Elimination Tips, shows how we've been misled!See for the first time how the entir...(related: Debt Relief)
How Do I Lower My Debt Burdens?
How do I lower my debts?There are several ways of improving your credit status. If you have decided upon taking up firm steps to decrease your debts, then you may...(related: Debt Relief)
Slowing Spending - The Key To Your Debt Plans Success
Anyone who embarks on a debt reduction program should know the rules for success. There aretwo. You need to stop adding to your debt. You need to find extra money to pay it off quickly.You also need to know the deck is stacked against you. The sellers of goods and services havegobs of information at their fingertips. They know where you live. They have a closeapproximation of your income. They are aware of your interests. They al...(related: Debt Relief)
The Debt Free Lifestyle
Many people have been taught that you cannot get ahead without debt. We are also inundated with advertising telling us we can have anything we want. All we need to do is put it on our credit card.We have become an impatient society, we want it right now. We have lost the ethic of wor...(related: Debt Relief)
Credit Counseling Or Bankruptcy: Which Is Best For You?
People often get to a place where they simply can't pay their bills, especially in today's economy which is not particularly sympathetic toward the poor or even the middle class. Inflation has impacted nearly every facet of daily life including food, gas, rent, clothes, utility bills and more. At the same time, salaries, especially in the lower ranges, have utterly failed to keep pace. When you get to the place where you cannot pay your bills and have money left over for food and other necessities, there are some hard decisions that have to be faced. The options are credit counseling and debt management services, or bankruptc...(related: Debt Relief)
Bankruptcy Your Best Bet?
Filing bankruptcy is a common practice among the U.S. Over 2 million people file for bankruptcy every year. So many families today are swimming in debt, which is not surprising...(related: Debt Relief)
Individual Voluntary Arrangements- A New Alternative To Bankruptcy
This May, the Department of Trade and Industry in the UK found that there were 10,091 bankruptcies in the first quarter of 2005. This represents an increase of 24.5% on the corresponding quarter of last year.Bankruptcy can leave an individual feeling ashamed, depressed and out of control. Furthermore, for many the stigma of bankruptcy can be too much to bear.However, there may be an alternative to going bankrupt which can also help people in serious debt to make a fresh start.The Insolvency Act of 1986 introduced The Individual Voluntary Arrangement (also known as an IVA) as an alternative to bankruptcy.The idea behind the introduction of the Individual Voluntary Arrangement was to enable people facing financial difficult...(related: Debt Relief)