Why is it that when a hot-button political issue hits the news, it is immediately forgotten once there has been a resolution? Just because the bankruptcy bill was passed into law doesn’t automatically make it a good thing. This law is BAD! Bad laws need to be overturned.
Why is the law bad? It removes the reset button when a catastrophic event forces you into poverty. Most bankruptcies are a result of something catastrophic… illness, job loss, or business failure. Supporters of this bill claim that it was passed to close the loophole of rich people bankrupting businesses as a financial move, while protecting their assets… this law does NOT do that.
The wealthy can still protect their assets in a bankruptcy, while the poor and middle class cannot even protect their homes in most states. The real loopholes still exist and the middle class is left with no recourse when predatory credit card companies raise interest rates.
What is in your credit card interest rate? Many will be surprised to find out that included “already” in the rate is 1) the cost of money as currently set by the Fed 2) a profit for the credit card company AND 3) a built-in rate to cover unpaid bills such as bankrupt customers. The credit card companies are NOT losing money when you declare bankruptcy – they have safeguards already calculated into the rate! This new bankruptcy law allows them to ‘double-dip.’ Not only are they protected from bankruptcies by their interest rates, they are now guaranteed that the middle class will have to fork over to pay a debt that has already been paid many times over in interest.
When King George III of England excessively taxed tea without giving colonists a voice in governance, a cry of “No taxation without representation” arose and the people of Boston revolted with the Boston Tea Party. When King George Bush II signed into a law a bill that forces the middle class to pay a debt twice, a cry needs to arise… “No predatory credit card rates without bankruptcy protection!!!” It doesn’t sound as catchy, but the situation is every bit as threatening to the American way of life.
Write ALL your elected officials and tell them that you will never vote for another incumbant until this bankruptcy law is repealed!!!