Forgive Us Our Debts--Explaining the Rising Tide of Bankruptcy
An article in the December issue of Scientic American is the newest in a long line of recent public interest in bankruptcy. Citing a 1978 court decision which allowed national banks to charge interest rates determined in their home state, the article examines where our current debt-heavy culture spawned. It appears that since allowing banks to charge high interest rates, more consumers were drawn into debt (credit card companies could afford to give cards to less-qualified customers at these higher rates). Today the trend continues as applications for credit become less personal, and feel more anonymous. This rising ability for less-qualified individuals to recieve credit does not appear to be effectively fought by new bankruptcy laws. Despite BARF's attempts to make it more diffucult to file for chapter 7 bankruptcy, bankruptcy experts, "tend to be skeptical or noncommital about the effictiveness in reducing filings." Look for this article to be available at the Scientific American website soon.
