Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Ilaine who wrote (55339)	11/1/2004 3:53:15 PM
From: Snowshoe	Respond to of 74559

Have you run up against any of these new-style collection companies that buy up old consumer debt for 3-5 cents on the dollar? People are getting stretched on the rack for old debts from years ago they'd completely forgotten about. If they don't pay, they get hauled into small claims court. But for that price the debt-buyer rarely gest any supporting paperwork. Smart lawyers are going to court on behalf of the debtor and saying: "Prove it!"

To: Ilaine who wrote (55339)	11/2/2004 4:04:44 AM
From: Maurice Winn	Respond to of 74559

Thanks CB. Without knowing the details, it seemed certain to me that debt these days is totally different from debt in the bad old Great Depression days. Now I know a few more of the reasons: <Mortgages in the Great Depression were typically for four years, not 15-20-30, and even worse, were callable -- the lender could demand payment in full at any time. Today's mortgages are not callable except in the event of default. Further, bankruptcy laws like Chapters 11, 12 and 13 allow debtors to retain possession of their property and make reduced payments to creditors. People with no property have the option of Chapter 7. And even if you don't have property, you can still file Chapter 13, which doesn't have the time limit to file successive cases like Chapter 7 does (6 years from discharge law doesn't apply in Chapter 13 cases). Just one of the many many reasons why studying the Great Depression doesn't help much in predicting what can happen in America.> Mqurice