Should there be a law concerning credit related lawsuits?

Now that congress has passed the new bankruptcy laws that do not allow credit obligations to be totally wiped clean, this has given creditors free reign to file lawsuits for bad credit. The amount of lawsuits are jumping high as it is forcing people to file bankruptcy which under the new rules forces them to pay regardless. This use to be bad policy for creditors as it created bad business for consumers.

Do creditors have right to sue consumers with money they have made off of consumers? Should credit be regarded as an investment made by a creditor to a consumer and if that investment goes bad to not cry about it? Are in likewise manner people allowed to sue companies and stock brokers if our investments are lost for one reason or another? So if that cannot be allowed should corporations be allowed to sue consumers for their own bad investments?

Should this be allowed or should congress amend the law to disallow lawsuits for credit obligations?

This entry was posted on Thursday, July 2nd, 2009 at 1:33 am and is filed under Bankruptcy Law. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

One Response to “Should there be a law concerning credit related lawsuits?”

1. jstanton1616 Says:
   July 4th, 2009 at 11:48 pm

   Although we may like to think better of our society, credit card companies wield a tremendous amount of lobbying power. However, can you imagine knowing that you will be exonerated from your credit obligations; what would be the incentive to pay. The government has a difficulty time in screwing with the constitutionally protected freedom to contract, so by virtue of such they will not willingly excuse the debtor for breaching that obligation.