Why not consolidation, negotiation?
I previously posted here under the subject "Everything but the
negatives" and I appreciate the prompt and cogent replies I received,
particularly the one from Mr. Weiss.
At the time I wondered about the fact that no downsides to BR were
offered to me by the attorney I consulted. "All gain, no or little pain"
naturally arouses suspicion.
I am continuing to do my homework as best I can, and have found
that if you ask a BR attorney you'll likely be told that
consolidation/negotiation is basically a waste of time and will never allow
the individual to make a clean break and reconstruct his/her life. On the
other hand, there are many who encourage this as a positive move -- one
that preserves and may even enhance the user's credit status.
Of course, the consolidation "industry" (fact that it is non-profit
notwithstanding) is bolstered, as far as I know, by the credit industry,
creating an incentive to encourage negotiation over BR.
Bottom line: It's extraordinarily difficult to find anyone who
might be considered less than entirely partisan. Can anyone argue on behalf
of consolidation/private negotiation?
A side question: if bankruptcy laws are gutted, won't that also
eliminate any incentive the credit companies have to negotiate?
-To answer a little of your last question.
It is my understanding that the real aim of the revisions to the law is
to cut down on Chapter 7 BR - which leave the credit companies out of
luck. Chapter 13 gets them part of their money.
-Another