Bankruptcy Good for the Economy
By Kurt O'Keefe, Attorney at Law on Apr 8, 2009 in General Bankruptcy Information
Sounds wrong, but studies show the easier it is to file bankruptcy, the more people will take risks to start a new business.
One of our favorite themes here at the bankruptcy law network, problems with the 2005 bankruptcy law changes James Surowiecki in the New Yorker.
The actual cause of the increase in bankruptcy filings used by the credit industry lobby to get the laws changed, was, the increase in credit extended by those same companies.
Filings per million dollars of consumer credit varied little, about 4%, in the twenty years or so before the law was changed. The more they lend, the more people who go broke.
Those 2005 changes in bankruptcy law, some highlighted by San Diego bankruptcy attorney Michael Doan, made it more difficult and more expensive to file.
The savings promised to the rest of us from lower credit card interest rates? Yet to materialize.
Of course, the bankrupties that would be best for the economy would be AIG and all the other bailout recipients. But no, the politicians dole out our tax money to the big boys, and leave the bankruptcy laws alone, so far.
Michigan consumer attorney Kurt O’Keefe has been pounding the no bailout! theme for a while.
Significant bankruptcy reform passed the House, but is languishing in the Senate.
“HAVE YOU CONTACTED YOUR CONGRESSPEOPLE?”
www.savehomewithbankruptcy.com/lobby/htm
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