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...statistics show that Chapter 7 bankruptcy filings are rising faster than the more complex Chapter 13 filings. While the latter requires individuals to repay a substantial portion of their debt and prevents banks from foreclosing on their homes, Chapter 7 bankruptcy allows a debtor to wipe out his or her debts entirely and get a fresh start. "It is very fast and very deep debt restructuring," says Porter. Since 2005, Chapter 13 filings have dropped from about 35% of all personal bankruptcy filings to 25%, she says. "Systemically, that's a big change...

Author: /time Magazine | Title: Personal Bankruptcies Hit a High and May Keep Rising | 4/5/2010 | See Source »

...Debt Debate Zachary Karabell's suggestion in "In Defense of U.S. Debt" that America can borrow its way to prosperity is a perfect illustration of the liberal mind-set [March 15]. Whether it's raising taxes or borrowing more, the answer is OPM: other people's money. John Knoerle Chicago...

Author: /time Magazine | Title: Inbox | 4/5/2010 | See Source »

...just the size of the debt that causes anxiety; it's whom we owe it to. Foreign governments, to which we are already beholden for the bulk of our energy, own a quarter of our debt. Now the U.S. government can't function without their aid? It's scary. Dave Hulett Malakoff, Texas...

Author: /time Magazine | Title: Inbox | 4/5/2010 | See Source »

...heavily subsidized health care and microfinancing schemes, delighted the lower classes and helped Thaksin win the largest electoral mandate in Thai history. Economists have critiqued the loan projects, pointing out that much of the money was spent on satisfying consumption cravings, as opposed to building businesses, thereby creating unsustainable debt loads. Long-term reality mattered less, however, than short-term perception. At last, Thailand's downtrodden felt like they mattered - until the 2006 coup ousted their chosen man. (Read the interview with Thailand's former PM Thaksin Shinawatra...

Author: /time Magazine | Title: Thailand: Why the Reds Are in Revolt | 4/5/2010 | See Source »

...overconfident [March 22]. In the first entry, "prophets of doom" are seen as missing the reality of American "nimbleness and adaptability." Yet your story misses the reality that America is in a governance gridlock, which raises serious questions about the nation's ability to cope with current crises like debt, unemployment, the terrorist threat and a diminished competitive position globally...

Author: /time Magazine | Title: Inbox | 4/5/2010 | See Source »

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