158,000 Personal Bankruptcies In March, 75% of them Chapter 7

[jtuck004]

Those looking for economic bright spots will not find it in foreclosures or bankruptcies. Please consider Sharp Increase in March in Personal Bankruptcies from the New York Times.

<SNIP>

The Debt Slave Act of 2005 (better known Bankruptcy Reform Act of 2005) continues to make complete fools out of its sponsors. After the bill passed, banks made very poor loans figuring people would be forced into chapter 13 and would have to pay the loans back some way somehow.

Well, people without a job cannot restructure anything, nor would they want to if they could, because most of them are hugely underwater in houses.

Banks got everything they wanted in the bill. It is fitting it blew up in their faces.

http://globaleconomicanalysis.blogspot.com/

[Better Today]

1. Great article, and here's a more direct link to get to the correct article.

http://globaleconomicanalysis.blogspot.com/2010/04/158000-personal-bankruptcies-in-march.html

[jtuck004]

2. Thank you. I just took it off the top. n.t

[aquart]

3. Economic fool needs explanation of Chapter 7.

I have no idea why that kind of bankruptcy (what kind of bankruptcy?) is making fools of the banks. Although it does give me a frisson of wicked glee to think of it.

[madrchsod]

4. the bank is stuck with a house that may or may not sell for years.

the banks were counting on those who worked would file chapter 13 to save their homes but it did`t work out that way. people walked away because they did`t have enough money to pay for a home that was worth far less than what they paid. if the banks would have lowered the payments to what the real value is then maybe they would`t be stuck with property that won`t sell for years.

the increases of bankruptcies and foreclosures are not going away anytime soon.

that reform bill looked good during the expansion of the bubble but it blew up in their collective faces.

[glowing]

5. AND when they had the opportunity to allow judges to cram down the 1st owned

property by a homeowner this summer, our "friend" Dodd, stripped it out... It would have saved a lot of people their homes and kept neighborhoods intact.

[Better Today]

6. AND they also get stuck with $0 return on the other debts like CCs that the

Chapter 7-ers are dropping. Unlike Chapter 13-ers who continue to pay on house and some percentage of the other debts.