Ch.7...Bankruptcy.....Who Wins<>Loses??
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From: Texas, just south of NY c
Ch.7...Bankruptcy.....Who Wins<>Loses??
If secured creditors retain ownership and therefore control over the asset do they lose anything as a result of Ch.7 ? Unsecured creditors such as MC\Visa know full well that they will incurr a 20% default rate and willingly accept such due to the fact that they are able to charge Mafia interest rates and still make an outrageous amount of profit. So....are there any big losers due to Ch.7 filings. The old addage that "we all Pay" for those who file ch.7 doesn't seem to ring entirely true to me. Maybe I've missed something , comments.....s.kuteman
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From: Lenexa, KS
Secured creditors may get the asset back but they lose the amount that has been depreciated since the debtor purchased the asset. (the difference between what the asset was worth at purchase verses what it's worth at repossession). Maybe credit card interest wouldn't be so high if 20% of the users weren't getting a free ride. If you need to borrow money, credit cards usually aren't the right place to go. Also, if you pay your bill off every month, you pay no interest. Therefore, the only people paying the high rates are those that wish to carry a balance, (borrow from the credit card company). Other big losers include but are not limited to:
We all pay, every time these people write off bad debt their prices have to reflect the loss. It's built in to everything we buy.
- Utilities
- Doctors
- Furniture stores
- Anyone else that trusted the person with any credit.
We all pay, every time these people write off bad debt their prices have to reflect the loss. It's built in to everything we buy.
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So correct fisher_of_man, small businesses are the biggest losers and they are the ones who have previously provided the goods or services for which they have not been paid. Small guys are at the end of the line.
Meanwhile, the biggest winner is lawyers. They have not invested a dime in the proceedings but they are somehow always first in line for any monetary dispersions.
Meanwhile, the biggest winner is lawyers. They have not invested a dime in the proceedings but they are somehow always first in line for any monetary dispersions.
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From: West Texas
Originally posted by aerocolorado
Meanwhile, the biggest winner is lawyers. They have not invested a dime in the proceedings but they are somehow always first in line for any monetary dispersions.
Meanwhile, the biggest winner is lawyers. They have not invested a dime in the proceedings but they are somehow always first in line for any monetary dispersions.
the majority of the time...the people never pay all the way thru...the attorney keeps the money, and by that time the creditors have already charged off the bad debt...YOU ARE CORRECT....the ONLY winner is the attorney!
we refer to ours as the BK Factory...most of the time at the meeting of the creditors, the attorney hadn't even met face to face with his cleints...it was always comical seeing him trying to find out who his next case was. I bet it was nothing for him to have 30-50 cases a day......
but to this point...nobody has stopped him...the new Bankruptcy legislation keeps getting hung up in congress.
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From: Calgary Canada
I've got a cousin that owns a lumber yard.
If he could collect on all his "receivables", ie deadbeats that owe him money that he'll never see, he could buy himself 10 new F350 4X4 CC 6.0 diesel Superduties, and have some change for accessories.
It hurts him.
Waxy
If he could collect on all his "receivables", ie deadbeats that owe him money that he'll never see, he could buy himself 10 new F350 4X4 CC 6.0 diesel Superduties, and have some change for accessories.
It hurts him.
Waxy
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From: Lenexa, KS
Originally posted by fisher_of_man
...YOU ARE CORRECT....the ONLY winner is the attorney!
...YOU ARE CORRECT....the ONLY winner is the attorney!
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From: West Texas
Originally posted by jskufan
I don't know if you'd use the word "winner", but the person who walks away from the debt after using the goods and services is the real winner. I make an exception to people that file bankruptcy as a result of catastrophic medical bills.
I don't know if you'd use the word "winner", but the person who walks away from the debt after using the goods and services is the real winner. I make an exception to people that file bankruptcy as a result of catastrophic medical bills.
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