Friday, March 11, 2005

Bankruptcy and the Law

Too. Many. Words.
Everybody is getting in on the act, talking about bankruptcy. The Jane Galt post and comments about covers it all.

The big deal has to do with Chapter Seven, which allows someone to stiff their creditors, versus Chapter Thirteen, which calls for a repayment arrangement. A means test pushes those who are at or above the median income in their state from Chapter Seven into a repayment schedule under Chapter Thirteen. Horrendous medical bills can be a kicker, along with piles of credit card debt.

Chalk up one more for institutions.
For individuals, caveat emptor.

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