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Total Bankruptcy
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Bankruptcy
Blogged date : 2007 Sep 11
Law professor at the University of Iowa, Katherine Potter's recent text Bankrupt Profits:
The Credit Industry's Business Model for Post-Bankruptcy Lending, shows why post-bankruptcy education can be crucial for debtors. Salon.com reports that one year after filing, bankruptcy filers receive an average of 14 credit card offers per month, many of which actually refer to the filer's bankruptcy. Why?
Potter writes post-bankruptcy debtors are seen as cash cows for credit card companies. She concludes: "If lenders' intense solicitation of such customers indeed is driven by these families' propensity to pay late, go over the limit, and revolve large balances, society may wish to prohibit or constrain such lending."