Thursday, November 13, 2014

Many banks defy bankruptcy rulings and demand payment

In the netherworld of consumer debt, there are zombies: bills that cannot be killed even by declaring personal bankruptcy.

Tens of thousands of Americans who went through bankruptcy are still haunted by debts long after — sometimes as long as a decade after — federal judges have extinguished the bills in court.

The problem, state and federal officials suspect, is that some of the nation’s biggest banks ignore bankruptcy court discharges, which render the debts void. Paying no heed to the courts, the banks keep the debts alive on credit reports, essentially forcing borrowers to make payments on bills that they do not legally owe.

Read the rest here.

Banks are the enemy!


The Anti-Gnostic said...

There's a level in Hell for this.

Visibilium said...

Is our bankruptcy laws' softness more godlike than our former practice of equitizing human capital?