April 19, 2021

John Oliver explains personal bankruptcy, how credit card lobbyists and lawyers make it much worse
Bankruptcy, especially as portrayed by bankruptcy lawyers, promises "a fresh start from your debts," John Oliver said on Sunday's Last Week Tonight. Between 800,000 and 1.5 million Americans file for bankruptcy each year, "and many worry that once the current pandemic assistance stops, more and more people will need the type of help" bankruptcy offers. The process gives people a chance to dig out from under a mountain of debt, but it does hit your credit score, and it carries a "completely misguided" social stigma, he said. "Bankruptcy is not solely caused by bad decisions, it's often caused by bad luck — unavoidable challenges like Job loss, divorce, surprise medical bills, or perhaps even, you know, a once-in-a-century global pandemic," Oliver said. But absurdly, "a lot of people can't afford to go bankrupt," quite literally. "Our modern bankruptcy code was enacted in 1978 — interestingly, around the same time that the credit card industry began to enjoy a period of steady deregulation," Oliver said. That "worked out very well for them, because they marketed themselves aggressively, and during this time, consumer debt began to sharply rise. And what the industry clearly wanted was people stuck in a lucrative cycle of minimum payments, late fees, and interest hikes. What they didn't want spoiling that was people cutting the cycle short through bankruptcy." The credit card industry lobbied Congress aggressively, and a 2005 law made it harder and more expensive to file for personal bankruptcy, Oliver said. He explained the two kinds of personal bankruptcy, Chapter 7 and Chapter 13, and noted that many lawyers steer clients to the more expensive option, Chapter 13 — especially if their clients are black. "Even bankruptcy discriminates against Black people," Oliver sighed. He illuminated why people might have to file for bankruptcy twice — not, as Suze Orman suggests, "recklessness" or "moral failing" — and blamed "much of what is wrong with our current bankruptcy system" on the 2005 overhaul. If you paid attention to the 2020 Democratic primaries, you already know President Biden was a big backer of the 2005 law and clashed with Sen. Elizabeth Warren (D-Mass.) over it — and if you weren't paying attention. Oliver offered a recap. Warren now has an overhaul bill that Biden broadly supports, but it is unlikely to pass if 10 Republicans need to sign on to thwart a filibuster, he said. Oliver closed with a NSFW animated summation of his argument that also pillories mandatory credit counseling. Watch below.

Related Stories
Latest News
Top news around the world
Coronavirus Disease

Coronavirus disease (COVID-19) is an infectious disease caused by a newly discovered coronavirus.

Most people infected with the COVID-19 virus will experience mild to moderate respiratory illness and recover without requiring special treatment. Older people, and those with underlying medical problems like cardiovascular disease, diabetes, chronic respiratory disease, and cancer are more likely to develop serious illness.

Around the World

Celebrity News

> Latest News in Media

Watch It
Disney Stock Slumps on Lower Than Expected Disney+ Subscriber Growth in Q2
May 13, 2021
BFLjJus2t3g
Jean Smart and Hannah Einbinder Reveal the Comedians That Inspired HBO's 'Hacks’
May 12, 2021
Kcm5Nf6pEBY
'The Bachelor' Star Colton Underwood Addresses His Controversial Coming Out
May 05, 2021
kVERop3CQZo
Henry Cavill Slams Haters & Defends Girlfriend Natalie | E! News
May 15, 2021
dfzIaiKENnk
Don Lemon Clarifies Leaving CNN Remark He Made On-Air | E! News
May 15, 2021
vqnHp6_Kna4
Shanna Moakler Removes Travis Barker's Tattooed Name From Wrist | E! News
May 15, 2021
xtau0ZaV-Jc
Salt Bae's Beverly Hills Restaurant Nusr-Et a Gigantic Hit | TMZ
May 15, 2021
F-nO476Bbec
Tamika Mallory Says Activists Can't Ease Up After Chauvin Conviction | TMZ
May 14, 2021
TNsaNa5bB2U
Whoopi Goldberg's Shocked Ellen DeGeneres' Talk Show is Ending | TMZ
May 14, 2021
yYV2uk_kxBE
Sexual assault lawsuit against Kevin Spacey set to be dismissed | Page Six Celebrity News
May 14, 2021
XsUgmiSAT34
Jennifer Lawrence freaks out over Jennifer Lopez-Ben Affleck reunion | Page Six Celebrity News
May 14, 2021
J7JocMfYXiw
Prince Harry slams Joe Rogan over vaccination remarks | Page Six Celebrity News
May 14, 2021
Mj3yqnp1GaE
TV Schedule
Late Night Show
Watch the latest shows of U.S. top comedians

Sports

Latest sport results, news, videos, interviews and comments
Latest Events
19
Nov
ASIAN CHAMPIONS LEAGUE: Group H
Sydney FC - Shanghai SIPG
17
Nov
UEFA NATIONS LEAGUE A: Group Stage
Spain - Germany
14
Nov
UEFA NATIONS LEAGUE A: Group Stage
Germany - Ukraine
08
Nov
ENGLAND: Premier League
Manchester City - Liverpool
08
Nov
ENGLAND: Premier League
Arsenal - Aston Villa
08
Nov
SPAIN: La Liga
Valencia - Real Madrid
08
Nov
ITALY: Serie A
AC Milan - Verona
08
Nov
ENGLAND: Premier League
West Bromwich Albion - Tottenham Hotspur
08
Nov
ITALY: Serie A
Bologna - Napoli
08
Nov
ITALY: Serie A
Genoa - Roma
08
Nov
ITALY: Serie A
Atalanta - Inter Milan
08
Nov
ITALY: Serie A
Lazio - Juventus
08
Nov
GERMANY: Bundesliga
Bayer Leverkusen - Borussia Monchengladbach
08
Nov
ENGLAND: Premier League
Leicester City - Wolves
08
Nov
GERMANY: Bundesliga
Wolfsburg - Hoffenheim
08
Nov
SPAIN: La Liga
Real Valladolid - Athletic Bilbao
08
Nov
SPAIN: La Liga
Levante - Alaves
08
Nov
SPAIN: La Liga
Real Sociedad - Granada CF
08
Nov
ITALY: Serie A
Torino - Crotone
08
Nov
SPAIN: La Liga
Getafe - Villarreal
07
Nov
GERMANY: Bundesliga
Borussia Dortmund - Bayern Munich
07
Nov
ENGLAND: Premier League
Everton - Manchester United
07
Nov
ENGLAND: Premier League
Chelsea - Sheffield United
07
Nov
SPAIN: La Liga
Atletico Madrid - Cadiz
07
Nov
SPAIN: La Liga
Barcelona - Real Betis
07
Nov
GERMANY: Bundesliga
Augsburg - Hertha Berlin
07
Nov
GERMANY: Bundesliga
Stuttgart - Eintracht Frankfurt
07
Nov
GERMANY: Bundesliga
RB Leipzig - SC Freiburg
07
Nov
ENGLAND: Championship
Rotherham - Preston NE
07
Nov
ITALY: Serie A
Parma - Fiorentina
07
Nov
ENGLAND: Championship
Watford - Coventry
07
Nov
ENGLAND: Championship
Norwich City - Swansea City
07
Nov
ENGLAND: Championship
Blackburn - QPR
07
Nov
ENGLAND: Championship
Derby County - Barnsley
07
Nov
ENGLAND: Championship
Huddersfield - Luton
07
Nov
ENGLAND: Championship
Nottingham Forest - Wycombe Wanderers
07
Nov
ENGLAND: Premier League
West Ham United - Fulham
07
Nov
ENGLAND: Championship
Sheffield Wednesday - Millwall
07
Nov
ENGLAND: Championship
Brentford - Middlesbrough
07
Nov
ENGLAND: Championship
Birmingham - Bournemouth
07
Nov
SPAIN: La Liga
Sevilla - Osasuna
07
Nov
ITALY: Serie A
Benevento - Spezia
07
Nov
ENGLAND: Premier League
Crystal Palace - Leeds
04
Nov
CHAMPIONS LEAGUE: Group stage, Group G
Ferencvaros - Juventus
04
Nov
CHAMPIONS LEAGUE: Group stage, Group G
Barcelona - Dynamo K.
03
Nov
CHAMPIONS LEAGUE: Group stage, Group A
Salzburg - Bayern Munich
03
Nov
CHAMPIONS LEAGUE: Group stage, Group D
Atalanta - Liverpool
Find us on Instagram
at @feedimo to stay up to date with the latest.
Featured Video You Might Like
zWJ3MxW_HWA L1eLanNeZKg i1XRgbyUtOo -g9Qziqbif8 0vmRhiLHE2U JFCZUoa6MYE UfN5PCF5EUo 2PV55f3-UAg W3y9zuI_F64 -7qCxIccihU pQ9gcOoH9R8 g5MRDEXRk4k
Copyright © 2020 Feedimo. All Rights Reserved.