Bankruptcy, More Difficult Than Before
Life is not always fair. Most people that file for bankruptcy do so out of necessity not because they simply want to avoid paying their debts. Of all the people that file for personal bankruptcies, nearly 40% of them file due to some financial crisis outside of their control. In many cases this financial crisis is some serious health issue.
For people that don’t have health insurance or a health plan, any catastrophic illness such as a stroke or hear attack, can potentially wreck their finances. And, even for many of those who have health insurance, the combination of insurance premiums and deductibles, can put a major dent in their finances. Particularly hit hard are the elderly and families where a single woman is the head of the household. It can be frightening to think of just how close many people in this country are to foreclosure, bankruptcy, or complete financial ruin. For many the prospect of even buying a car after filing bankruptcy is an impossible task.
The loss of a steady job is the second largest reason why many people have to file for bankruptcy. An abrupt loss of a job because of company layoffs, company outsourcing, or simply a company going out of business can very easily wreck the financial underpinnings of a family that is already knee deep in debt and practically living from paycheck to paycheck. Those who divorce have it even worse. It can lead to a situation of having to support two households instead of one and also potentially alimony payments.
It can be embarrassing knowing that your financial life can simply be condensed into a bankruptcy credit report filings. Regrettably, the current bankruptcy law, which was passed in the late Autumn of 2005, was essentially scripted by the credit card companies. And as you might well anticipate, they modified the law that was in effect them to work in their favor. and, coincidentally the forgot to put in provisions to protect citizens that may have fallen into the above categories.
Recently, however, the U.S. House of Representatives held a vote to freeze the interest rates that credit card companies can charge their customers.
Their decision was not doubt motivated by the growing anger that has been building up from their constituents who see the banks profiting from the misfortunes of customers. The vote was 331-92, one of the rare pieces of bipartisan votes that have been held recently.
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