Tennessee Insurance

Another million Americans in bankruptcy during the last year, nine million join fellow debtor bankruptcy in the past ten years, with greater occupation of debtors, for one reason or another of not simply say that their bills. One million mobile phone accounts of $ 1 billion was spent in writing because of the distance the vehicle. In the meantime, banks to a depreciation of $ 17 billion of bad loans pocket their customers, their credit card left is involved.

“With one in 100 households in a state of bankruptcy, people are more comfortable with the idea that they are used,” complained Saturday Gerdano of the American Institute of bankruptcy law. “Boutique bankrupt retailers, travel airlines in bankruptcy, and some of them live in Orange County bankruptcy, then why not in the crowd?”

The Woodstock of insolvents began, banks and credit card companies completely off guard. They hire a research firm, SMR Budd Lake, New Jersey, to look inside. Even the researchers were surprised by the results. SMR discovered, there are Hot Spots bankruptcies, similarly, there are certain infectious diseases. In addition, the “hot spots” does not occur on predictable places - cities or countries of serious unemployment and the population living in the ankle. Indeed, McAllen, Texas, with 18% unemployment, and Hawaii, with abnormally high consumer debt, both of which have been relatively few bankruptcies per capita of the population. According to the President, SMR, Stuart Feldstein, USA with most bankruptcies per capita (Tennessee, the list), the distribution of the three basic characteristics - a high divorce rate, lax regulation of auto insurance and Much of the population, who have no health insurance. Zone stone-throwing in a fourth feature - more than a number of lawyers advertise their services - as perhaps. In a typical case of a band of consumers before a sudden disaster and costly (divorce, illness, or damages for infringement) decides to live by Visa and Master Card, until the problem can be solved or until she wins the lottery. If the lottery does not come, and she maxed on their cards, file for Chapter 7, or simply ignore unpaid bills. (It could be a “he” we speak, but the Wise Guy sexually seeks to correct.)

The way newspapers cover in this respect, we think that banks have the responsibility of sending cards in the first place, and this deserves are eager Bastarde stiffed. The Wise Guy, a shareholder in several banks, “said the banker is always a bad Rap, this is another example of the guilt of the victim. Given that the old adage that says “credit does not ruin credit cards; human beings.”

Contrary to popular belief, bankers, in general, to prevent stiffed by their owner, but by Feldstein, two factors working against them: (1) the difficulties encountered during its consideration of a cardholder, income and (2) the dissemination of non - Fee Card. “If people had to pay an annual fee, they were exasperated, remove a quantity of maps and years,” he says. As it is, the cards in their drawers a binding source of cash in a pinch.

The real loser in the epidemic of crime are nondelinquents, in large part on credit card tabs before and wise to pay punitive interest rates. While banks no doubt, deserves some criticism drilling rates, credit quality is the main debt. Feldstein The figures are the two points stapled to bankruptcy write-offs, and four additional points to cover the costs of people simply refuse to pay. In the case rate credit card can file on the same level as Home Equity sentences in which the annual depreciation is a lumpige $ 8.5 million.

There is a movement ongoing efforts, reform of bankruptcy law, with various parties that his 2 cents. As it is now the man to file Chapter 7 routine foot courts dusted with their own debts and no repayment obligation, a person with a $ 1 million annual income can not erase its debt, simply as a person zero income. For now, debtors are not prisons on the reformers’ agenda, but the Wise Guy, an event for him, especially for authors serial credit card. I think the direction of a pokey privatized in possession of Citicorp or MBNA, where chronic deadbeats could run their debts answering machines for customers service department.