Re: New bankruptcy law

[Charles Pouncy <cpouncy@xxxxxxxxxxxxx>]

I'll try to dig up the reference, but my understanding is that in the last
decade a major reason for bankruptcy has been health care expenses, which
puts a slightly different gloss on the problem.

Charles Pouncy

.   At 12:13 PM 03/16/2001 -0800, you wrote:
>I've been bothered by the repeated assertion that the main causes
>of bankruptcies are job loss and divorce.  My impression was that
>bankruptcies are caused by borrowing, especially at high interest
>rates from creditors who encourage continuing indebtedness at
>high compounded interest rates.
>
>On a quick search I didn't find what we need, which would require
>a kind of investigation that accountants don't do, but the following
>are helpful:
>
>"Family Finances in the U.S.: Recent Evidence from
>the Survey of Consumer Finances"
>
>http://www.federalreserve.gov/pubs/bulletin/1997/0197lead.pdf
>
>More pertinent is:
>
>"Bank Trends - The Effect of Consumer Interest Deregulation on
>Credit Card Volumes, Charge-Offs, and the Personal Bankruptcy Rate"
>
>http://www.fdic.gov/bank/analytical/bank/bt_9805.html
>
>which attributes increased bankruptcies to a Supreme Court decision
>that allowed unregulated interest rates.
>
>Credit-card bankruptcies and addiction to gambling are of a class,
>both encouraged by rapacious governments.
>
>        Mason
>    =======================================
>    http://MasonC.home.netcom.com/index.html
>    complete book:   Get Rich in Small Business
>    complete book:   Healing Wisdom of Dr. P. P. Quimby
>    Political Economics for Real People
>    =======================================
>
>
Charles R.P. Pouncy
Temple University
Beasley School of Law			"if life means much to you
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