How Will My Bankrutpcy Effect the Creditors?
The credit industry spent millions upon millions of dollars trying to convince special interest groups, politicians and the general public that there was widespread abuse of the bankruptcy system by people who could afford to pay their debts. In fact, there never was a widespread abuse of the bankruptcy system. Although bankruptcy filings have almost doubled over the last ten years, the dramatic increase is a symptom of financial difficulties stemming from unexpected medical costs, family crises like divorce and loss of jobs. In my opinion, the most significant contributing factor to the dramatic increase in bankruptcy filings has been the deregulation of credit card interest rates and the predatory lending practices of the credit industry as a whole. Over the past 10 years credit card solicitations have doubled to five billion per year. Credit card profits have increased 163% – from $11.5 billion to $30.2 billion. Credit is doled out to the young, the elderly, and everyone in between,
