New bankruptcy rules

New rules which just went into effect make it harder to declare bankruptcy, and may require people to actually pay back their debts, decry hysterical liberals. So what is wrong with that? Who pays for it when someone borrows money and then declares bankruptcy to avoid paying their debt? We do! The market interest rate includes a risk premium to compensate lenders for the various risks which they entail by making the loan. Default risk is a major part of that risk. If fewer people declare bankruptcy and more people repay their debts, people who do repay their debts will benefit from lower interest rates.