| Author |
Message |
Theresa
Lux Mihi Deus
Joined: 17 Jun 2001
Posts: 27256
Location: United States of America
|
 Thu Apr 14, 2005 3:31 pm Congress Passes Bankruptcy Reform Bill |
|
| Quote: | By MARCY GORDON
WASHINGTON (AP) - Tens of thousands of people who want to wipe out their debts in bankruptcy court would have to work out repayment plans instead under legislation Congress approved Thursday.
A 302-126 vote by the House sent the legislation to President Bush, who is eager to sign it, the biggest rewrite of the bankruptcy code in a quarter-century. It marks the second major change in law to benefit business since Republicans increased their House and Senate majorities in last fall's elections.
Debate in the House was acrimonious as Democratic opponents warned that the measure would hurt the economically vulnerable.
After eight years of strenuous efforts by congressional backers, banks and credit card companies, the legislation was catapulted toward enactment starting earlier this year. The legislation, which garnered some Democratic votes, cleared the Senate last month on a 74-25 vote.
The measure would require people with incomes above a certain level to pay credit-card charges, medical bills and other obligations under a court-ordered bankruptcy plan.
Opponents say the change would fall especially hard on low-income working people, single mothers, minorities and the elderly and would remove a safety net for those who have lost their jobs or face crushing medical bills.
The legislation ``protects the credit industry at the expense of the consumer,'' Rep. Alcee Hastings, D-Fla., declared in House debate. ``It will drive more Americans deeper into financial crisis and weaken the nation's economy and social structure.''
But backers in Congress and the financial services industry argue that bankruptcy frequently is the last refuge of gamblers, impulsive shoppers, divorced or separated fathers avoiding child support, and multimillionaires - often celebrities - who buy mansions in states with liberal homestead exemptions to shelter assets from creditors.
Rep. David Dreier, R-Calif., said the legislation would save American families an average $400 a year in higher interest rates now charged to consumers to recoup losses from those who abuse bankruptcy proceedings.
In a bitter scene on the House floor, Democrats - most of whom opposed the legislation - used an array of parliamentary maneuvers to delay the final vote, forcing an unsuccessful roll call vote on adjourning the session and lining up one by one to register their objections in brief, biting statements.
Democrats were furious that the GOP leadership allowed none of the 35 amendments they had proposed earlier to be voted on. They particularly wanted provisions that would exempt from the new bankruptcy requirements military personnel returning from Iraq and Afghanistan, and people whose indebtedness is the result of financial identity theft.
Between 30,000 and 210,000 people - from 3.5 percent to 20 percent of those who dissolve their debts in bankruptcy each year in exchange for forfeiting some assets - would be disqualified from doing so under the legislation, according to the American Bankruptcy Institute.
Taking effect six months from enactment, the measure would set up an income-based test for measuring a debtor's ability to repay debts. Those with insufficient assets or income could still file a Chapter 7 bankruptcy, which, if approved by a judge, erases debts entirely after certain assets are forfeited. Those with income above the state's median income who can pay at least $6,000 over five years - $100 a month - would be forced into Chapter 13, where a judge would then order a repayment plan.
The legislation also would require people in bankruptcy to pay for credit counseling.
Underscoring the issue's political sensitivity, the liberal group MoveOn was beginning a campaign of radio ads this week against House lawmakers of both parties who support the legislation.
``We're going to call the Republican agenda what it truly is: a war on the middle class,'' said Tom Matzzie, the Washington director of MoveOn's political action committee.
New personal bankruptcy filings edged down from 1,613,097 in the year ending June 30, 2003, to 1,599,986 in the year ending last June 30, breaking an upward trend of recent years.
Under the current system, a federal bankruptcy judge determines whether individuals must repay some or all of their debt.
On the Net:
Information on the bill, S. 256, can be found at http://thomas.loc.gov/
American Bankruptcy Institute: http://www.abiworld.org
04/14/05 15:49
� Copyright The Associated Press.
|
I read this, the bill, and think it's a good idea. It's making people responsible for their own debt. What a concept.
-------signature-------
Some of us fall by the wayside
And some of us soar to the stars
And some of us sail through our troubles
And some have to live with our scars
|
|
|
Jeff Miller
Fleet Admiral
Joined: 22 Nov 2001
Posts: 23947
Location: Mental Ward for the Mentaly Unstable 6th floor, Saint John's 1615 Delaware Longview Washington 98632
|
| Fri Apr 15, 2005 9:15 am |
|
I think this is a real bad idea it can't be any good for people who has fallen on hard times.
|
|
|
Kylon
Lieutenant Commander
Joined: 03 Jun 2002
Posts: 292
Location: In a distant galaxy far far away...
|
| Sat Apr 16, 2005 6:38 pm |
|
I think it's a wonderful idea, and while were at it, lets take away benefits for people with disability, welfare for single mothers, and government assisted educational opportunities for the poor!
Always look to where something will lead. Don't ask, "Is this bad?", ask "Is where this is going bad?", and if it is, then it's bad.
I believe it's just another act by the Republican party to help their interest, which is the interest of the large corporations.
I don't mean all Republicans, but the Republican party, just as the Democratic party has large biotech companies which cater to it.
Last edited by Kylon on Mon Apr 18, 2005 7:43 pm; edited 1 time in total
-------signature-------
Imagination is more important than knowledge.
Albert Einstein
|
|
|
webtaz99
Commodore
Joined: 13 Nov 2003
Posts: 1229
Location: The Other Side
|
| Sat Apr 16, 2005 11:55 pm |
|
Mark my words well. It is only a matter of time until we revert to debtor's prison and indentured servitude. I truly wish I was kidding.
-------signature-------
"History is made at night! Character is who you are in the dark." (Lord John Whorfin)
|
|
|
|
|
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum
|
Powered by phpBB © 2001, 2002 phpBB Group
Star Trek �, in all its various forms, are trademarks & copyrights of Paramount Pictures
This site has no official connection with Star Trek or Paramount Pictures
Site content/Site design elements owned by Morphy and is meant to only be an archive/Tribute to STV.com
|
Search
FAQ
Log in
