Tag - bankruptcy

Debt Ceiling Disaster – Crazy or Criminal?

By Michael Collins

(Washington, DC 1/9/13) Let’s say that on a Monday, you sit down and take a hard look at your finances. Your bills exceed your income, assets are just a feint memory, and there is no relief in sight. Reluctantly, you decide that your only choice is to declare bankruptcy. On Tuesday you say, I think I’ll do some shopping before it’s all over. You proceed to charge $2,000 on your VISA card for some jewelry and other non essentials. On Wednesday, you get a lawyer and file for bankruptcy.

Guess what? You still owe the $2,000 since the court will conclude that you made the purchases fraudulently. You knew you were filing for bankruptcy and made the charges anyway. Even worse, the court may refuse to grant the bankruptcy filing all together as a result of the obvious fraud.

That is exactly what the Republicans in the House of Representatives are doing with their open announcement that they will vote against raising the debt ceiling without their solution to government spending. Since that announcement, has one single deficit hawk stood up and said, We must stop all spending as of this moment since we are proposing to default on those expenditures? Read More