« New Credit Card Tricks, Traps, and 79.9% APRs | Main | Big Drop in December 2009 Filings--That's RIght, a Big Drop »

2009 Milestones?

posted by John Pottow

Any nominations?  So much with high-profile items like bailout to choose from, but I like the fact that debit card usage exceeded credit card in Q4 for the first time....


I nominate bankruptcy filing rate. Bankruptcy filing rates have returned to their previously normal amount, averaged over the last 12 years. If there is an increase in 2010-2012 it will be the difference between the average rate (1.4Million) and the deficit for the years 2006-2009.

Second would be the rate of increased spending that the US legislature has created in the last 12 months. It will feel like the mortgage crisis deja vue when the tax increases come, along with the impending inflation. Double wammy.

Third would be the low value of the dollar against other currencies. It can't stay that low forever and when it does rebound watch for another round of Leman Brothers type of failures, especially in banking and the healthcare business, where I have heard that has become common practice to finance monthly operations with devalued dollars.

Fourth would be ... unemployment ... which is at 17% if you count those who are no longer eligible for benefits but have stopped looking for work along with the current eligible recipients.

The ugly frogmarch of the auto companies through bankruptcy at the expense of bondholders who tried to stand in the way of Big Gov.

For me it was when Credit Card Co's begged for more time to prepare their "system" for the new law and then stuck it to us. It was like a big joke. Like "ha ha got you". Then the Republicans blocked (for no apparent reason whatsoever and non that they would state publicly)a bill that would turn it all around in favor of the consumer right before Christmas. Nice try Dodd, mad props for the try. Republicans what the hell do you want? You want us to consume or clam up? Make up your freggin mind!

Don't like credit card companies? Don't use them.

I vote for the arrival of bankruptcy super hero BAPCPA Man on the scene as a milestone in 2009. http://bankruptcybill.us/category/cartoons/bapcpa-man/

-Bankruptcy Bill

ps Full disclosure: I am the founder and vice-president of the BAPCPA Man Fan Club's New York Chapter and am also Facebook friends with the creators of the cartoon.

What happened to the 20% of consumers, who filed chapter 7, where a study suggested they could afford to repay in full or part of their unsecured debts. Haven't seen a jump in chapter 13 filings since 2005 even close to the 20%.

The comments to this entry are closed.


Current Guests

Follow Us On Twitter

Like Us on Facebook

  • Like Us on Facebook

    By "Liking" us on Facebook, you will receive excerpts of our posts in your Facebook news feed. (If you change your mind, you can undo it later.) Note that this is different than "Liking" our Facebook page, although a "Like" in either place will get you Credit Slips post on your Facebook news feed.



  • As a public service, the University of Illinois College of Law operates Bankr-L, an e-mail list on which bankruptcy professionals can exchange information. Bankr-L is administered by one of the Credit Slips bloggers, Professor Robert M. Lawless of the University of Illinois. Although Bankr-L is a free service, membership is limited only to persons with a professional connection to the bankruptcy field (e.g., lawyer, accountant, academic, judge). To request a subscription on Bankr-L, click here to visit the page for the list and then click on the link for "Subscribe." After completing the information there, please also send an e-mail to Professor Lawless ([email protected]) with a short description of your professional connection to bankruptcy. A link to a URL with a professional bio or other identifying information would be great.