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To: Elroy Jetson who wrote (25386)	3/11/2005 12:57:36 AM
From: CalculatedRisk	Read Replies (1) \| Respond to of 116555

I haven't seen the details of the new bankruptcy law. Are you saying that people cannot walk away clean from their foreclosed homes? (except black mark on their credit report) I thought that bankruptcy was for unsecured debts ... secured debts (car, houses, etc.) just require the asset to be returned to the lender. Of course if someone took out an unsecured line of credit (many people are!) or borrowed money on their credit card to make the downpayment - they would still owe that amount. Like I say, I haven't checked into the details.

To: Elroy Jetson who wrote (25386)	3/11/2005 10:31:55 AM
From: patron_anejo_por_favor	Read Replies (1) \| Respond to of 116555

A few stray thoughts on the bankruptcy bill I PM'd to Ork last night: An "unintended consequence" from the bankruptcy bill occurred to me today. Lets suppose the bill succeeds and makes it harder to declare BK. Wouldn't that eventually force some borrowers out of the market, outta fear that they can't take the easy way out? In an economy built on maximum leverage, clearing out even some of the marginal demand could cause the whole house of cards to implode, starting with real estate spending as people start to watch their CC balances, then extending to housing if folks actually start behaving like grown ups. Nah, that's too much of a long shot to even consider!<G/NG>