New Bankruptcy Laws Bite Lenders
(Image is used under the Pixabay license)
Originally, the bankruptcy laws were a catch-all for handling aggressive and dishonest lending allowing people to completely remove their debts once every 7 years. That way, even if someone made mistakes or was suckered in by bad credit deals, they could escape them under some circumstances and start over.
Lenders weren't happy with this and wanted it to be much harder for people to get out of the credit programs they carefully lured you into. They scored victory in 2005 by managing to secure a new law that made it much tougher for people to file bankruptcy, but didn't do anything to help curb the massive lending abuses by credit grantors. Now it seems the one-sided bill may have hurt lenders as much as it's helped them.
Tags: Bankruptcy, Banks