Worse than they think

Reader comment on: Bankruptcy "Reform" and the Financial Crisis

Submitted by Mark (United States), May 13, 2010 18:08

Unfortunately, the problems caused by the best legislation ever purchased by the credit card industry actually extend beyond those folks who have already filed for bankruptcy and not gotten as much debt discharged. If you cannot discharge your credit card debt in bankruptcy but are able to get rid of a deficiency claim on the mortgage in that same bankruptcy, when the homeowner no longer has equity in the house to protect, it makes good sense to pay your credit card debts -- which are higher rate to start with -- and stiff your mortgage lender. By defaulting on the mortgage debt and making credit card payments, the home owner can usually extract a certain rent-free period in addition. As such, it should be no surprise that consumers choose to pay off the loans which were non-dischargeable ... and walked on their mortgage obligations in record numbers.


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Other reader comments on this item

Title By Date
⇒ Worse than they think [147 words]MarkMay 13, 2010 18:08
Tight correlation [44 words]TimmehMay 10, 2010 13:16
More than a name
[w/response] [78 words]
benMay 10, 2010 11:08
Would it have even come up for a vote in a Democratically controlled Congress?
[w/response] [47 words]
benMay 10, 2010 12:24
Delaware is the credit card capital of the country [11 words]benMay 10, 2010 13:19

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