John Oliver explains about personal bankruptcy, how credit card lobbyists and lawyers can make bankruptcy even worse

Bankruptcy promises “a new start from your debt,” especially as portrayed by bankruptcy lawyers, John Oliver said on Sunday. Last week tonight.. Every year, 800,000 to 1.5 million Americans file for bankruptcy, saying, “I’m worried that more and more people will need this kind of support when the current pandemic support ceases.” I’m offering. This process gives people the opportunity to dig down from the bottom of a pile of debt, but it hits your credit score and it brings “totally false” social disgrace, he said.

“Bankruptcy is often caused by bad luck, not just bad decisions — inevitable challenges like unemployment, divorce, surprise medical costs, or perhaps a once-in-a-century pandemic.” Oliver said. .. But ridiculously, “many people can’t afford to go bankrupt” is literally.

“Our modern bankruptcy code was enacted in 1978. Interestingly, almost as soon as the credit card industry began to enjoy a period of steady deregulation,” Oliver said. It said, “It worked very well for them because they were aggressively marketing. During this time, consumer debt began to rise exponentially, and the industry clearly wanted people to pay the minimum, I was stuck in a favorable cycle of late fees and rate hikes .. What they didn’t want to spoil was that people shortened the cycle due to bankruptcy. “

Oliver said the credit card industry was actively working with Congress and the 2005 law made filing for personal bankruptcy more difficult and more expensive. He described two types of personal bankruptcy, Chapters 7 and 13, and pointed out that many lawyers are directing clients to the more expensive option, Chapter 13. Especially if the client is black. “Even bankruptcy discriminates against blacks,” Oliver sighed. He clarified why people have to file for bankruptcy twice. As Suze Oman suggests, he blamed “what’s wrong with the current bankruptcy system” in the 2005 overhaul, rather than “recklessness” or “moral failure.”

If you pay attention to the 2020 Democratic Preliminary Election, you already know that President Biden was a big supporter of the 2005 law and clashed with Senator Elizabeth Warren (D-Mass) over it. Oliver provided a summary. Warren currently has an overhaul bill that Biden widely supports, but he said it is unlikely to be passed if 10 Republicans need to sign to prevent filibuster. It was. Oliver concludes with a summary of NSFW animations in his discussion that also plunders compulsory credit counseling. See below.

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