Chapter 13 Bankruptcies are NOTORIOUSLY unsuccessful

[nonconformist]

Right now, about 30% of all personal bankruptcies filed are Chapter 13's. Of those 30%, 75% FAIL when the debtor misses a payment in the 3-5 year plan and their case is dismissed. In most cases, the debtor ends up filing for Chapter 7 anyway.

Yet with this new bill, it will force many people who could have qualified for Chapter 7 into a Chapter 13.

It doesn't take a genius to figure out that forcing more people into a Chapter 13 will only increase the already grim failure rate.

Be sure to mention these facts if you are contacting our "Democratic leaders" that supported this monstrosity.

[FloridaPat]

1. The point of the bill is to get still more money to the credit card comps

Someone is forced into Chapt 13, the CC cos get just a little bit extra money. Now multiply that by the large number of Americans that are going to go bankrupt when the economy collapses, and it comes out quit a lot of money. Then they turn around and bribe some more repubs. Next bill might have mandatory military service for the bankrupt populace and money taken out of their combat pay to payoff creditors.

[nonconformist]

2. So true.

People will lose their homes just so they can squeeze a couple thousand dollars more out of them before they default on their Chapter 13.

[nonconformist]

3. Kick

These facts underscore what a truly shitty piece of legislation this is.