REPEAL the 2005 Bankruptcy "Reform" Act - the most UNDESERVED BAILOUT to financial crooks ever....

[Faryn Balyncd]

For 200+ years our nation prospered with laws that allowed people a fresh start.

Before 2005, the option of bankruptcy not only prevented the debt imprisonment of European autocracies, but forced lenders to exercise prudence in extending loans.

But when the greedy, bonus-baby executives of Citigroup, BOA, and MBNA could not maintain their fictitious paper "profits" without sending piles of pre-approved unsolicited credit cards to every nursery school student, registered dog and occasional gerbil in America, they lobbied Congress to "reform" our centuries old bankruptcy laws so that ordinary Americans (corporations excepted) would find it next to impossible to discharge unsuppotable debts in bankruptcy.

This "reform" created a "debtor prison without walls".

Ironically, the benefactors same Wall Street criminals we are now bailing out with billions of dollars of taxpayer money.

The same criminals that have now used that money to pay themselves multi-million dollar bonuses, while bankrupting their own company and stockholders (often the pension plans of ordinary Americans).

It's time we realize what an atrocious piece of legislation the so-called Bankruptcy "Reform" Act of 2005 really was.

It is more important than limiting bailed out CEO pay to $500,000.

We need to REPEAL the special interest debt slavery legislation that we enacted to allow credit card executives to escape financial accountability for their greedy and irresponsible actions in extending credit without regard to sound business practices.

Our government had no business assuming the role of collecting agent for greedy financial criminals.

By eliminating the financial safety-net of bankruptcy, which is what we did in bankruptcy "Reform", we became a government responsive to corporation rather than citizens.

If now is not the time for REPEAL of this atrocious legislation, when is?




:kick:

[librechik]

1. Yes indeed--why don't we write former Sen. Biden about this?

He's as responsible for it as any Republican.

[Faryn Balyncd]

9. Good idea. Maybe now that he representing more than Delaware, he might want to make amends.

http://www.commondreams.org/views05/0304-26.htm

[fasttense]

2. What exactly were the changes?

Can't people wipe out their debt anymore?

[ellacott]

3. I thought you had a set up a re-payment plan

[Faryn Balyncd]

5. It made Chapter 7 filing virtually unavailable. Now a person denied insurance, and gouged 300%....

...to 600% MORE by a hospital than the price paid by insurance companies, and forced into insolvency, can NEVER discharge their debt under Chapter 7.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x4813564

(Perhaps even more significant, with the option of Chapter 7 bankruptcy off the table, that person has no leverage to force the hospital to adjust the bill to a reasonable amount (perhaps say, to only TWICE as much as an HMO would pay for the same hospital service. :sarcasm: )


http://blog.totalbankruptcy.com/archives/bankruptcy-and-the-economy-experts-2005-bankruptcy-reform-caused-foreclosure-crisis.html

http://en.wikipedia.org/wiki/Bankruptcy_Abuse_Prevention_and_Consumer_Protection_Act

[JoDog]

10. Chapter 7 is still widely available

I should know...I plan to file for it on Feb. 18. The 2005 law imposed restrictions on who could file for Chapter 7 (total discharge) and who could be forced into a Chapter 13 (repayment plan). This was to keep people who are rich enough to possibly pay something to their creditors from gaming the system. It also expanded the list of debts that cannot be discharged in any bankruptcy (like private student loans, taxes and child support).

Don't get me wrong, I don't like it either. But depending on the situation, a person like the one you described probably could get a discharge under Ch 7, depending on what their income is and what assets they own. Millions in this country have gotten Ch 7 since the new law came into effect.

For more information, check out the website bkforum.com.

[melm00se]

4. Bankruptcy is the USA

has yoyo'd back and forth over the years.

Voluntary bankruptcy (as opposed to involuntary - where the creditors could take action - but that still exists but is rarely used) came in in 1800 and then out in 1803; back in in 1841; back out in 1843; in again 1867; back out in 1878; back in in 1898; overhauled in 1938 and then again in 1978.

One of the big discussions back in 78 was whether or not CH13 (reorg) should be the mandatory choice but that was changed to make CH13 as voluntary and CH7 came into being which eventually brought us around the 2005 overhaul.

Does the argument from '78 sound familiar?

[earth mom]

6. K & R!

:kick:

[wroberts189]

7. I am with you k&r

[Wednesdays]

8. Kay and Arr

:kick: