The Problem of Default

The Problem In the modern United States, too many lawsuits are decided by default. This is especially true in debt collection cases, where reported default rates frequently range from 60% to 95%. Default is certainly bad for defendants, but perhaps more importantly, default engenders a system in which the state publicly declares a winner to Read more about The Problem of Default[…]

Financial Distress

The Problem

Cartoon, legal self-help, debt collection, show me proofAs of 2014, more than 77 million people in the U.S. had at least one account reported as “in collection” on their credit reports, owing an average of $5,178 (median $1,349).   Distressed debt results in collection lawsuits, a messy and error-prone credit report, and a potential need for bankruptcy.  In other words, debt problems are legal problems, and an inability to resolve debt problems leads to legal consequences.  What proposals are out there to address the legal aspects distressed debt?  How would we know whether those proposals work?