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Bankruptcy Laws
I have a confession to make. I'm in way over my head when it comes to debt. It's
my own fault and I admit that. For several years, I couldn't afford to buy
anything I wanted, so I paid with plastic. Little did I know that decision would
come back to haunt me. I owe close to $20,000. My credit score is very high and
I am very proud of that. I live paycheck to paycheck, not always have the
slightest clue how I will pay my bills each month. And I'll also admit that last
year, when I heard that the bankruptcy laws were changing, I contemplated
filing. I hated the mere thought of contemplating something that I knew would
hurt my excellent credit. As the deadline for filing bankruptcy before the new
laws approached, my husband and I debated for days. In the end, we decided to
not do it. I realized that it was our own carelessness that had gotten us into
debt and I should accept responsibility for it. Our best friends however, chose
to file while only being in debt a few thousand. What I found exceptionally
irritating was the fact that right before they filed, they purchased two brand
new cars and went on a cruise. Basically, since they charged the cruise, they
didn't pay a cent for it. To me, that's the same concept as stealing.
The amount of bankruptcy in 2005 jumped almost 30% as people rushed to get
their filings completed before the new laws took hold. Personal bankruptcy
totaled almost 2.1 million across the country. Those statistics make it the
largest number of bankruptcy filed in any 12 month period in our history.
That's scary. Think about that - 2.1 million people found themselves in
financial trouble last year. Everyone who filed has their own reasons,
whether it be credit card debt, job loss or medical bills. The list of
reasons goes on for miles. As a matter of fact, high medical bills are the
main reason for the large number of bankruptcy. Let's face it, most people
do not have adequate health care. All it takes is for someone to get
hospitalized or ill and suddenly they find themselves in severe debt. That's
worse than scary, it's sad.
I understand the need for the new laws, I really do. That doesn't mean I
agree with them in every case. The reason that laws are changing is because
too many people were taking advantage of filing bankruptcy. They'd charge up
their credit cards with new furniture purchases, exotic vacations, and many
things they absolutely had no true need for. Then, they'd file for
bankruptcy and poof - their money woes were over. On the other hand, since
the new laws have gone into effect, the people who face overwhelming debts
that could not be controlled are facing more hurdles in order to get a fresh
start. Is that fair? Of course not. But, as you know, it only takes one
person to ruin it for everyone else. And lots of people did.
If the main reason for the onset of bankruptcy is high medical bills, why
doesn't the government take a look at altering those issues? If credit card
companies are complaining that they don't get paid when people file for
bankruptcy, why give people such a high credit line? Sure, many bankruptcy
could be avoided with some common sense usage, that's for certain. But what
about those who really are struggling? Who is looking out for them?
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