Joe Biden was just on CNBC

[whylaff]

I hope the find the video later, but he indicated that we need to change the bankruptcy laws to favor the guy on Main St.

Biden was a very strong supporter of the bipartisan bankruptcy changes that went into effect in 2005, which ultimately required individuals making above certain median amounts to enter into an organized repayment plan, rather than a complete liquidation. By forcing individuals into a repayment plan, you force them to make decisions about their standard of living when they analyze their cash flow. Unfortunately, housing is one of those things that may need to be changed, even with a repayment plan, retaining a home is not always financially feasible. So, if you have an individual who makes above a median income as set by the IRS, has a large mortgage payment and a large amount of credit card debt ? they can still give up their house, which still has to go through foreclosure to remove any additional liens, this deficiency balance then becomes part of the same unsecured debt as the credit cards, but obviously, for a considerably less amount and less priority in the plan.

Despite the name, in chapter 7 liquidation, depending on your state and the equity in your home, keeping your home and reaffirming the debt, while discharging those large credit cards balances to free up monthly cash flow, was a very real option for people.

It?s interesting, and I?m just rambling.

 

[Thump553]

Please don't refer to the 2005 bankruptcy changes as reforms, as it was drafted by and bought by the financial industry and the chnages were all for the sole benefit of the credit industry. As someone who worked in the trenches of bankrutpcy before before and after this change, the only thing that really changed was a whole lot of additional paperwork, steps and expenses were thrown in the way of the debtor in an attempt to frustrate them.

Bill Clinton was right to violate that travesty and it was a dark day for US when the changes were passed.


PS-I have never done a bankruptcy yet where my client wasn't receiving preapproved credit card offers in the days before they filed bankruptcy. The problem wasn't the law, it was stupid creditor decisions.

 

[IronWing]

Since bankruptcy law changes, how come CC interest rates have not plunged to reflect the reduction in risk faced by issuers?

 

[TheSlamma]

Originally posted by: ironwing
Since bankruptcy law changes, how come CC interest rates have not plunged to reflect the reduction in risk faced by issuers?

I'd also like to know that since these laws have changed why don't Americans get rid of more of their cards in favor of spending money they actually have instead.

 

[StageLeft]

Originally posted by: ironwing
Since bankruptcy law changes, how come CC interest rates have not plunged to reflect the reduction in risk faced by issuers?

Not sure, but don't forget the other factors including a MUCH greater reliance on plastic now than even a year or two ago--average household CC debt is skyrocketing. Also, as the economy drags and people continue to increase this reliance, the risk of CC companies should increase.

 

[QED]

Wow... is this the same Joe Biden who pushed through the "bankruptcy reform" law in the Senate as a gift to Delaware-based MBNA-- the very same MBNA where his son made a handsome living lobbying for?

 

[Druidx]

Funny...
They are going to Hope for reforms to the law.

 

[Moonbeam]

I learned from Republicans how to go into debt but I learned from Democrats how to have some social values that bring me happiness so money and things aren't too important.

 

[Dari]

Originally posted by: TheSlamma

Originally posted by: ironwing
Since bankruptcy law changes, how come CC interest rates have not plunged to reflect the reduction in risk faced by issuers?

I'd also like to know that since these laws have changed why don't Americans get rid of more of their cards in favor of spending money they actually have instead.

Implicit Collusion, to answer ironwing's question. To answer your question, how many Americans do you know that pay attention to bankruptcy laws? They find out about it when they go to file for bankruptcy. By then it's too late. But all this comes back to personal responsibility. If you can't manage your personal finances, you have no one to blame but yourself.

e.g. I have one credit card, use it whenever I can, and pay off the entire amount every 2nd day of the month. My cc company is happy because they get a lot of merchant fees and I'm happy because I get their "points", which come in handy every couple of months. I never pay interest.

 

[Jaskalas]

Originally posted by: Moonbeam
I learned from Republicans how to go into debt but I learned from Democrats how to have some social values that bring me happiness so money and things aren't too important.

Hell, I wouldn?t want money or a job either if I could get a free ride paid for by others.

 

[lupi]

There's a whole lot of stuff with the finance system that needs some reform work so it's not so opposing to the regular joe. Allowing price fixing, preventing CC and credit agency reform, bankruptcy, pensions , and on and on.

 

[Starbuck1975]

Wow... is this the same Joe Biden who pushed through the "bankruptcy reform" law in the Senate as a gift to Delaware-based MBNA-- the very same MBNA where his son made a handsome living lobbying for?

I am really surprised that Biden's son lobbying activity is not getting much press...you don't get more status quo Washington than that.

 

[Dari]

Originally posted by: Starbuck1975

Wow... is this the same Joe Biden who pushed through the "bankruptcy reform" law in the Senate as a gift to Delaware-based MBNA-- the very same MBNA where his son made a handsome living lobbying for?

I am really surprised that Biden's son lobbying activity is not getting much press...you don't get more status quo Washington than that.

Because he quit?

 

[Starbuck1975]

Because he quit?

He quit only after his father joined Obama's ticket, and financially benefitted for many years from his father's political influence.

Change We Can Believe In...so long as we ignore the contradictions.

 

[lupi]

Originally posted by: Starbuck1975

Wow... is this the same Joe Biden who pushed through the "bankruptcy reform" law in the Senate as a gift to Delaware-based MBNA-- the very same MBNA where his son made a handsome living lobbying for?

I am really surprised that Biden's son lobbying activity is not getting much press...you don't get more status quo Washington than that.

You answered yourself.

 

[Craig234]

Originally posted by: TheSlamma

Originally posted by: ironwing
Since bankruptcy law changes, how come CC interest rates have not plunged to reflect the reduction in risk faced by issuers?

I'd also like to know that since these laws have changed why don't Americans get rid of more of their cards in favor of spending money they actually have instead.

Because people abuse credit. Poor people, rich people, big corporations, all abuse easy credit if it's available. Note corporations doing excessively risky things and crashing?

 

[Craig234]

Originally posted by: QED
Wow... is this the same Joe Biden who pushed through the "bankruptcy reform" law in the Senate as a gift to Delaware-based MBNA-- the very same MBNA where his son made a handsome living lobbying for?

Looks like it is. Without checking further, I'd speculate that he did sell out on that; politicians often have their key donors, and this was a bad one.

On the other hand, the fact that he's now coming out against those changes and calling for making the law better for people is in his favor and shows he's changed his ways.

There is plenty for him to run on if he were still selling out to the industry - the fact he's taking this position, not under any public pressure, suggests he's reformed.

But by the way, as far as *party* agenda, that bill had 25 no votes in the Senate, and every single no vote was a democrat.

I've long said that while the Republicans are nearly completely compromised as a party, there's a battle between the corporatized democrats and the progressive democrats.

 

[Dari]

Originally posted by: Starbuck1975

Because he quit?

He quit only after his father joined Obama's ticket, and financially benefitted for many years from his father's political influence.

Change We Can Believe In...so long as we ignore the contradictions.

What contradictions...that Biden's son was a lobbyist? Is his son part of the campaign?

 

[ITJunkie]

Originally posted by: Starbuck1975

Because he quit?

He quit only after his father joined Obama's ticket, and financially benefitted for many years from his father's political influence.

Change We Can Believe In...so long as we ignore the contradictions.

Good lord it's fun watching people debate two sides of the same coin :laugh:

Kool-aid's this way sheeple ->

 

[QED]

Originally posted by: Dari

Originally posted by: Starbuck1975

Because he quit?

He quit only after his father joined Obama's ticket, and financially benefitted for many years from his father's political influence.

Change We Can Believe In...so long as we ignore the contradictions.

What contradictions...that Biden's son was a lobbyist? Is his son part of the campaign?

There's nothing wrong with his son being a lobbyist-- however, setting public agenda that could directly and positively impact the bottom of line of a close family member gives the strong appearance of a conflict of interest.

Obama supposedly detests lobbyists but managed to stear millions and millions of dollars in federal dollars to clients of Biden's son. I won't hold my breath waiting for the New York Times to look into that...

 

[Xavier434]

Originally posted by: Jaskalas

Originally posted by: Moonbeam
I learned from Republicans how to go into debt but I learned from Democrats how to have some social values that bring me happiness so money and things aren't too important.

Hell, I wouldn?t want money or a job either if I could get a free ride paid for by others.

Yes you would.

 

[Craig234]

Originally posted by: QED

Originally posted by: Dari

Originally posted by: Starbuck1975

Because he quit?

He quit only after his father joined Obama's ticket, and financially benefitted for many years from his father's political influence.

Change We Can Believe In...so long as we ignore the contradictions.

What contradictions...that Biden's son was a lobbyist? Is his son part of the campaign?

There's nothing wrong with his son being a lobbyist-- however, setting public agenda that could directly and positively impact the bottom of line of a close family member gives the strong appearance of a conflict of interest.

Obama supposedly detests lobbyists but managed to stear millions and millions of dollars in federal dollars to clients of Biden's son. I won't hold my breath waiting for the New York Times to look into that...

Don't forget, Bush and the Carlyly Group, Cheney and Halliburton both have conflicts. Sometimes they're more direct, and sometimes it's more 'helping friends who help you'.

 

[bamacre]

Originally posted by: Moonbeam
I learned from Republicans how to go into debt but I learned from Democrats how to have some social values that bring me happiness so money and things aren't too important.

Wonderful for you, but not so wonderful for those younger people who will be shocked at their tax rates thanks to Medicare and Social Security.

Americans love government to do things for them, but they hate paying taxes. So the people and the government have solved this problem by spending the money of people who aren't old enough to vote.

 

[Xavier434]

Originally posted by: bamacre

Originally posted by: Moonbeam
I learned from Republicans how to go into debt but I learned from Democrats how to have some social values that bring me happiness so money and things aren't too important.

Wonderful for you, but not so wonderful for those younger people who will be shocked at their tax rates thanks to Medicare and Social Security.

Americans love government to do things for them, but they hate paying taxes. So the people and the government have solved this problem by spending the money of people who aren't old enough to vote.

Name one party that can help us fix that which are not filled with radical nut jobs. I'll give you one hint. It is not the LP. Personally, I don't think one truly exists for the time being.

 

[bamacre]

Originally posted by: Xavier434

Originally posted by: bamacre

Originally posted by: Moonbeam
I learned from Republicans how to go into debt but I learned from Democrats how to have some social values that bring me happiness so money and things aren't too important.

Wonderful for you, but not so wonderful for those younger people who will be shocked at their tax rates thanks to Medicare and Social Security.

Americans love government to do things for them, but they hate paying taxes. So the people and the government have solved this problem by spending the money of people who aren't old enough to vote.

Name one party that can help us fix that which are not filled with radical nut jobs. I'll give you one hint. It is not the LP. Personally, I don't think one truly exists for the time being.

I think the nutjobs are those who will make that problem even worse. I mean, how sane could you be to ignore that problem? Or make it worse?