Rep Ron Kind's (D-WI) form email to me re his bankruptcy vote

[smoogatz]

He voted for the credit-industry-written bankruptcy bill. I sent him an irate email accusing him of selling out his constituents for a few thousand dollars in contributions. How should I answer his predictable response?


"Thank you for contacting me regarding S. 256, Bankruptcy Abuse Prevention and Consumer Protection Act. I appreciate hearing from you on this important issue.

"This bipartisan legislation passed the Senate by a vote of 74-25 and the House of Representatives 302-126, with a large number of Democrats supporting it in both chambers. The President signed the bill into law on April 20, 2005. I am pleased to have the opportunity to share my views on the issue with you.

"Most of us would agree that bankruptcy needs to be an option for those who truly need it--people who have exorbitant medical bills, death of a family member or an unexpected job loss. It is crucial that we protect the most vulnerable while reforming the bankruptcy code so that millionaires and others who can afford to repay their debt do so. Bankruptcy filings have risen steadily in recent years, an indication that our current system is an ineffective one that discourages consumers from saving and planning responsibly and ultimately is not good for consumers, families, or a society that values individual responsibility.

"While the bill is not perfect, it includes many positive aspects, including making Chapter 12 a permanent source of relief for struggling family farmers. Further, the bill will make the most wealthy debtors, who can afford to pay, responsible for their debts. Nobody below the median income ($43,000 in Wisconsin) will be affected by this legislation. Additionally, the courts will continue to have discretion to consider special circumstances, such as exorbitant medical bills or job loss and allow people to still file for Chapter 7. Because of these provisions, 90 percent of debtors will not be affected by this legislation.

"Some have argued that the average consumer will be hurt by bankruptcy reform, but in fact that the typical family now pays $400 each year in higher prices because other consumers declare bankruptcy and never repay their debts, thus passing the costs on to others. One of the particularly important aspects of the bill is that child support and alimony payments will be a first priority in debt repayments. Deadbeat parents can no longer hide behind the shield of bankruptcy to avoid paying child support or alimony. This provision was supported by agencies such as the National Child Support Enforcement Association, the National Association of Attorneys General, and the National District Attorneys Association. Another positive aspect of the bill is the requirement for credit card companies to inform their customers of the financial risks of making only minimum payments and other mandates of greater disclosure for the banking and credit industries.

"I take my responsibility as the representative for 680,000 Wisconsinites very seriously, and I would never cast a vote that would hurt the majority of these citizens. To the contrary, I believe bankruptcy reform will be a positive step in encouraging those Americans who can repay their debts to accept the responsibility to do so while continuing to protect those citizens deserving of Chapter 7.

"Again, thank you for contacting me. Should you have further questions or concerns, please do not hesitate to be in touch with my office.




Sincerely,

Ron Kind
Member of Congress"

[LisaM]

1. Is what he says even true?

On NPR this morning, they said that personal bankruptcies had been steadily decreasing.