If you declare bankruptcy, will everything be OK in a few days, weeks later?

[Donnachaidh]

http://www.opednews.com/articles/If-you-declare-bankruptcy-by-Michael-Collins-110727-23.html

The crazies in the United States House of Representatives would have you believe it were so. They say fix that budget before we'll raise the debt ceiling. If we don't get our fix, they announce, there's no deal. We'll just default until things get straightened out. (Image: George Romero)

Let's see what would happen to you or me. We are unable to pay our bills, unless we tap a special line of credit that we've used in the past, one that has never failed us. We'll have to raise some money and cut some expenses too.

We're tired of paying bills and just want to stop for a while. We file for bankruptcy following all of the required procedures. The minute we file, we're granted an automatic stay on our debt. We are now protected, no bills to pay.

Then we get a few visits from creditors. They let us know that they know we can pay. Other people owed money show up also and ask, what is your problem? You owe us the money. You can pay and you will. The combination of angry creditors and recipients of our funds forces us to do what we could have done in the first place.

More at the link --

[madrchsod]

1. i did and the credit card offers been filling the mail box

of course those cards raise the rates to over 30% if a payment is late.

rebuilding credit takes a long time.

i wonder how long it would take the usa?

[dmallind]

2. When you declare bankruptcy, can you decide what your bank-balance is a few days later?

The US government can. Issuing more debt (and hence having more cash to spend) is the work of moments once it's been voted to allow it.

And remember this default will not affect the payment of existing debt, which is constitutionally protected. The debt ceiling is a big deal, but what it does is mean we can't borrow any more to pay for things like federal salary, or procurement contracts, or state aid and so on. It does not mean we won't pay our debts on borrowed money.

Analogies between government and personal budgets, regardless of slant, are always wrong. The two simply don't work the same way. But the closest real analogy is not bankruptcy, but a temporary loss of the credit card while you're short on cash, but have the credit card bills paid out of a separate account that has enough in it to keep up payments.

[WingDinger]

3. If you dont declare EVERY last debtor, to the judge, you are in trouble.

The Chinese will be allowed to pour over our books, insisting on austerity measures. Same with the IMF and World bank. To our ruination. Not that the Chinese werent the ones that had access to our world bank records, for that two years it was hacked.

The teafreaks think that having another demand austerity gets them off the hook. Thus, turning the debt ceiling into a crisis that will NOW warrant a downgrade, or default. Assured by their brinksmanship. To get us cut off. Thus, making the job of gov almost, if not impossible. Not caring one fuck, about how the position of American currency as common world investment, will start to shrivel far faster than it was already.

We have unamerican saboteurs, that now want to replace the house majority leader, with a teafreak. And stop all gov from functioning. To turn public opinion against all gov solutions, to any human problem.