Quote:
Originally posted by Spanky
Mr. Wonk - I don't loose sleep over the credit companyes either, but the people I do feel that do get screwed over are the small businessman who have a ninety day invoice period with wealthy purchasers and they get screwed by a bankruptcy. I see it with these palaces in the Silicon Valley. The people go out and hire all sorts of contracters to build stuff, buy items for their house, etc and then declare bankruptcy.
I don't know if you read the last few lines of the Economist article but it said: "Other quirks of the legislation make one wonder why credit-industry groups are so keen on it. One loophole allows rich debtors to go on shielding assets in special trust accounts that are legal in a few states. And debtors' fancy homes in Texas and Florida will still be off-limits to creditors. The bill's backers say that fear of trampling on states' rights stopped them closing such loopholes. But it smells rather pervasively like special treatment for the rich."
I believe it is these areas where the reform is needed most and the bill doesn't cover these areas. I believe small businesses are the key to the success of the US economy and they are very fragile.
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We are in complete agreement on that score. I think that where bankruptcy reform is really needed is a uniform exemption, and stricter rules about restricting discharge for credit that is obtained shortly prior to filing. I also think that asset protection trusts, either domestic or foreign, are abusive as well.
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