Bankruptcy, Icelandic style

I have known a few people in the U.S. who have had to declare bankruptcy, my first husband's parents, two friends of mine. In some ways it is a liberating thing to do; it allows one a really fresh start, all debts completely wiped clean. But in other ways, it is severely hampering, since once that gets on your credit report, it is hard to even rent an apartment, and there are some jobs that you are automatically disqualified for, like working at a bank. Plus for a minimum of 7 years, nothing doing getting a new loan. 

Ironically, my first husband worked at a law firm representing banks, and thus had to organize getting police to kick people out of their houses, once they were 3 months passed due on their mortgage. 

Anyhow, Icelanders have been bouncing around the idea for at least the last 4 months, actually more like 6 months, to stop paying on their mortgages, just stop paying. The mortgages in many cases have tripled, depending on what currency they were taken out in.

But it seems to me no one expects to then get kicked out of their house if they stop paying on the mortgage. And thus I am reminded of Alda's term for this place, Niceland.  

Comments

Anonymous said…
Lagalega séð á vitanlega að henda fólki út. En hvað á að gera ef þúsundir hætta að borga, allir í einu? Ekki getur fólk lifað af á götunni á Íslandi. Hvort þetta gengur upp, stendur sem sagt og fellur með því að sem flestir taki þátt.
May 5, 2009 at 6:02 AM
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