Unfortunately bankruptcy has been disempowered strongly. There are quite a few types of non-dischargeable debt like court rulings and student loans in the US. Credit Cards are definitely dischargeable but bankruptcy has also been made as painful as possible for working people.
Credit scores, created in the 80s, are required for any type of borrowing. Bankruptcy effectively denies the filer any type of credit or loans that aren’t extremely predatory and costly. You effectively have to live 7 years without credit cards, new student loans, auto loans, mortgage, etc. Which, for many people under water might not be different than they live now, sans the credit cards. But in the absence of easy revolving credit, you may still need to borrow money to avoid eviction or your power being cut. In that case, your main option is going to be payday lenders. A service so corrupt and predatory it’d probably be classified as a criminal enterprise in the past.
I know someone who has delcared bankruptcy at least twice… each time she was showered with ads for credit cards and auto loans. Apparently the thought process is “this person can’t declare bankruptcy again for x years, so we’re safe.”
…wtf? If a person has declared bankruptsy, sure they can’t discharge again but their credit score is so trash they could just ignore creditors. As long as it isn’t worth it to take someone to court, they have less incentive to pay.
My MIL declared bankruptcy and after that she was awash in credit card ads. What you say makes sense but it doesn’t square with what I saw.
Well, that’s unexpected but I guess CC companies are willing to risk it. Especially if they know that CCs are the only viable option they have and they can offer penalty APRs with little pushback.
I’ve had extended family members declare bankruptcy several times and they’re still approved for a credit card. Whereas I have never missed a credit payment in my life have a hard time getting a line of credit. I don’t get it, the system is broken.
Same thing with my mother; she started getting pummeled with cc mailers within 6 months of her filing.
Wow, that is very harsh that not even bacrupcy can cleanse your student loans. For court rulings it makes a little bit of sense, but this…
I DECLARE BANKRUPTCY!
I came for this.
(That’s what she said)
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Not because “fuck other people”. Because “fuck banks”.
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Guess people should just be slaves to their debt because Checks Notes Banks are owned by people. Nah fuxk that noise, banks are owned by people profiting off the fact that they have large sums of Money they didnt even work for and gained by exploiting workers. Retirement funds and pension funds aren’t in any sort of peril from folks on their last legs declaring bankruptcy. Do you know who is in peril? Folks who are in crippling debt, which is one of the leading causes of suicide because they see no way out, and bankruptcy has been so heavily stigmatized by captial owners that they dont even consider it an option.
When companies do it, its a smart business decision, when individuals do it, its viewed as a leech on society for some god forsaken reason. Trying to further stigmatize bankruptcy is fucking pathetic, even for internet trolls.
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The banks aren’t good on their word you fucking trog. They raise the interest rates after you borrow, that’s not fucking playing fair by any means. Tell me your a scumbag banker without telling me.
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I mean, I paid what I borrowed, and they’re still saying I owe nearly that much. Reality doesn’t jive with what you’re saying when interest rates are so high that it crushes you into a hole just for borrowing.
