Big Bucks Bully Bankruptcy Bill Through Senate

[jbfam4]

Big Bucks Bully Bankruptcy Bill Through Senate

http://www.theledger.com/apps/pbcs.dll/article?AID=/20050313/NEWS/503130347/1036

When it comes to blatant hypocrisy, nothing beats the Senate record on the just-passed bankruptcy bill. This "reform," which parades as an effort to stop folks from spending lavishly on themselves and then stiffing their creditors by filing for bankruptcy protection, is a perfect illustration of how the political-money system tilts the law against average Americans.

The fact that for eight straight years it has gained a place on a crowded congressional calendar is testimony to the impact of the millions of dollars banks and credit card companies have spent on lobbyists and campaign contributions.

What happened -- and didn't happen -- during two weeks of Senate debate demonstrates just how the powerful exert their influence. It's all too typical of what takes place now in Washington with most issues.

The recent decade's rise in the number of bankruptcy cases has been dramatic, and it is not difficult to find cases of abuse. But most bankruptcy petitions are filed by people with real financial problems, often the result of family illness, divorce or loss of jobs. This bill will make it harder for everyone -- chiselers and innocent victims alike -- to get a clean start on their future without the overhang of mounting interest payments on unpaid credit cards and other debt.


On the other hand, when an amendment was offered to restrict so-called "asset protection trusts," used by wealthy individuals to shelter their portfolios from creditors, it was rejected. Five states -- Alaska, Delaware, Nevada, Rhode Island and Utah -- have changed their laws to let people who live anywhere in the country establish trusts of unlimited size that cannot be reached by federal bankruptcy proceedings. The amendment would have limited this "millionaires' loophole" to $125,000.

[cornermouse]

1. If the Senate really wants to see lavish spending

they should turn and look over toward the White House.

[biscotti]

2. disgraceful

the most damning is the last 2 sentences

" A Cornyn spokesman told me the bill sponsors said his amendment would cost them the support of the two Democratic senators from Delaware -- that favorite haven for big business.

And -- except for the lobbyists -- no one even noticed.

[peacetalksforall]

3. Those Dem and Repub Senators were despicable. And Sen Clinton said

she would have voted Yea also.

[jbfam4]

4. This was posted as an editorial in the Ledger, but

in today's Washington post this was written by By David S. Broder.


http://www.washingtonpost.com/wp-dyn/articles/A28522-2005Mar11.html?nav=hcmodule