BLAW 2013 Lecture Notes - Lecture 23: Automatic Stay, Credit Counseling
21 Mar 2017
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Other protections for debtor: the amount must be disclosed in contract, some properties= exempt from creditors" claims, protection against unreasonably high interest rates. In arkansas: max interest rate 17% More than 17%: usurious & loan= invalid: payday loan <= not allowed in arkansas. Rent for 10 days (w. interest ) To pay rents etc. in case salary= taken to repay debt (to survive until the next pay day) Top 5 reassumes why people go bankrupt: 1) medical expense (62%, 2) job loss, 3) poor (excess) use of credit, 4) divorce/ separation, 5) unexpected expenses (theft, casualty) Most of the reasons= out of individual"s control. Not due to poor characteristic/ personality but the ow of business. Combination of federal & state law: bankruptcy reform act (2005)*** Some famous people have led for bankruptcy. Frank baum ( wizard of oz ) henry ford. Walt disney: tennessee: most bankruptcy lings. Agricultural state area= bad turn of economy.
