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Very dumb on several levels.
Under the current system:
1. If he lied to obtain the credit, the debt is not dischargeable as it is considered fraud.
2. Even if the credit card companies, don?t bring the fraud issue up when the trustee sees that most of the debt is recent credit card debt he/she will file a 707b motion booting your friend out of bankruptcy and into state courts for collection.
3. Assuming he buys things with the credit cards he won?t get to keep the stuff. For example the upper cap on personal assets you can keep in my state is $7,500 for a single person. That includes any equity you have in a car plus your personal effects.
Under the new system:
He will be considered and treated as an indentured servant. The bankruptcy trustee will take his paycheck and distribute it to his creditors until they are paid off in full or five years passes.
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