Tuesday, October 04, 2005

Borrowers 'Stampede' Honolulu Bankruptcy Court

The Star Bulletin looks at the surge of defaults in Hawaii. "Debt-ridden consumers are stampeding Honolulu's bankruptcy court to beat an Oct. 17 deadline, when a new federal law will make it harder for people to wipe out their credit card debts and other obligations by filing for bankruptcy protection. The total number of bankruptcies filed statewide in September surged to 574, nearly triple the 204 filed in September 2004."

"During the quarter ended in September, more than 1,200 people or companies filed for protection in Honolulu. That was a 78 percent increase over the same quarter in 2004."

"'We've been seeing three to four times as many people as we generally do,' said Dawn Smith, a Honolulu bankruptcy lawyer who said the number of clients she is seeing has risen from six per day, at most, to 15 to 20. 'We're basically open all the time now, practically.'"

"Smith said she had a client who had a monthly income of $400 but still managed to rack up $60,000 in credit card debt. 'Charge cards have made it so easy to charge, but once you've done it, you're in their clutches,' she said."


At 3:07 AM, Blogger NYtoMD said...

The herds are lining up at BK courts around the country. It is really embarassing to be an American at this time, when the citizens of the "Reserve Currency" of the world show so little regard for the need to be self-sufficient.

An interesting sidebar to study- Illegal aliens and credit default. I used to go to Queens Plaza mall in NYC, which is in a heavily illegal-immigrant neighborhood (For you realty types, it gets @1100/sf/yr) and got a kick how the world would get right off the plane or bus and sign up for an array of credit cards, only to default and buy a new identity in Maspeth or Flushing for $300.

Credit, responsibly used, was this country's greatest strength- and it will be our undoing.

Short the credit co's unitl 10/17. How many Amex cards are being run up right now by people who already have thei BK filings filled out? Buy lots of untraceable gold and then BK. I pity the BK judges, but hope they are merciless.

-Ben, good luck on your newest venture- I still have Libertysoup bookmarked.


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