Many Parties Are Eager to Extend Credit to Those Who

question 6

Essay

Many parties are eager to extend credit to those who have just received a discharge in bankruptcy.One view is that such persons have no other debts and thus are a relatively safe credit risk.Furthermore,such persons cannot get another discharge in bankruptcy for 6 years.Many such persons,though,run up excessive debts time and again.Should there be limits on the ability of those discharged in bankruptcy to incur new debt? What are the arguments for and against such a rule?

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Definitions:

Observational Learning

The process of acquiring knowledge and skills by observing and imitating others.

Fads

Short-lived trends or crazes that gain rapid popularity and then fade quickly.

Fashions

Trends or styles in clothing, accessories, or behavior that are popular at a particular time and place.

Vicarious Reinforcement

A learning process where an individual's behavior changes based on observations of the consequences of others' behaviors.