Economic developments play themselves out over time, structures reverse themselves and as this article finds itself in archives over the next few decades, monetary debt will have taken a new shape. The problem with debt as most who have incurred will point out is that it keeps incrementing and multiplying over time, up to the extent that you end up having almost to pay double or triple the amount you actually borrowed. The list of people who would complain of debt can be an enormous one, students for one are probably the most common ones who find themselves in debt around US owing the heavy tuition fees charged by most colleges.
The real problem with debt policies is the manner in which they end up hurting either the people in debt or the collectors. In the corporate side, loans are usually accumulated from multiple sources and as such the charges for bankruptcy usually follow with lengthy cases trying to figure out the nature of the bankruptcy and getting the payment out of the borrowing company. The potential for harm here is increased because of the possibility of fraud. So the answer has to be the bankruptcy law in which case the biggest problem for all collectors is aligning themselves as the first collectors or the secondary collectors.
Now this is where loan taking becomes truly complicated. In many cases the corporations in question are perfectly aware of their own financial sustainability, but still do not shy away from taking huge loans to fund or finance a few ongoing projects. Then as the payment period draws closer, the bankruptcy is declared which adds up being problematic for the creditors. The bankruptcy law entails that you cannot charge someone for payment once they have declared themselves as bankrupt. Such a law protects the loan takers but ends up mitigating the creditors.
Why those policies still can be dodged.
The problem with most loan takers is the lack of planning they execute whilst taking the loans which means from a legal front a lot of them have to resort to dodging the constrains presented to them. In most opinions, loan cases become so messy to deal with because of having trouble to understand the intent behind each expenditure, that ultimately resulted in the company or the individual going bankrupt.
The change in policies
A lot of the newer government efforts are now focused in creating enough options for the loan takers that enable them to payback what they owe without resorting to crude measures. These policies vary of course because, the difference in the kind of loans creates all the manner in which a person handles the legality of the debt.
Students across universities in the US are afforded the option of income based payment which takes in a periodical assessment of their monthly income and bases off a figure of payment for them based on the figure.
Meanwhile there are various credit reduction schemes that work across reducing the interest amount owed by converting it into a form of investment. For creditors, it works as a preference because it allows them to override their own amounts as bad debts. The concept of a creditor writing off the debt as a bad debt is the tricky issue. Government policies obviously have to cater to the creditors need as well which means the amount has to be returned in some form so when bankruptcy is declared, government tries to impose one value for all creditors so that the compensation is made in equal and full when the company is able to compensate.
What the public demands
The overall allure of penny stock alerts has to be criticized here. Many commercial debts are incurred purely because of a lack of control over what the person spends and how they spend it. If I do have $800 waiting in my pocket, I do not have to spend 7/8 of the amount on luxury items. Whilst the marketing is catchy, you still have to attach the responsibility with the buyer so the criticism is not inaccurate but cannot be used as an excuse to overlook the debts incurred. The government policies might simply be a band aid put on a huge gash, when debt dealing policies are concerned which ultimately brings forward the verdict that you have to simply spend your amounts more carefully and plan your investment a lot more wisely.