Thursday, March 10, 2005


Yahoo! News - Senate Nixes Efforts to Soften Bankruptcy Bill
All hail the new plutocracy!

WASHINGTON (Reuters) - Efforts to soften the effect of tougher bankruptcy rules on families with children and close a loophole for the wealthy were rejected by the U.S. Senate on Wednesday as the legislation moved toward expected passage.

Leaders of the chamber's Republican majority had hoped for a final vote on Wednesday on the measure, which makes it harder for consumers to erase their debts in bankruptcy court. But the final vote was postponed until Thursday as lawmakers haggled over amendments.

Banks, credit card companies and retailers have sought the bankruptcy overhaul for years, arguing that bankruptcy has become too easy. The measure is also favored by the White House.

Critics charge the measure is too harsh and rewards lenders who have encouraged consumers to take on higher debt burdens.

Hey, little girl, wanna try some credit? C'mon, the first one is free, 0% APR and that's fixed, we promise! Here, take a card. Just one. We won't make you pay for six months! It's like having free money! Go ahead, just try it once. You'll like it!

I usually get two or three offers a day for credit cards. And I have credit limits that blow my mind. Now, if they offer a poor schmuck like me all this available credit, I can't imagine what they offer normal middle class folks.


With Senate approval virtually assured after the bill cleared two key hurdles on Tuesday, backers on Wednesday rejected proposals to ease the impact of the legislation on families with children, young people below age 21 and people with below-median incomes.

They also turned down a proposal by Massachusetts Democrat Sen. Edward Kennedy to close a loophole that benefits wealthier individuals in states with unlimited homestead exemptions, such as Texas and Florida.

"Millionaire deadbeats buy a huge mansion in Florida and Texas to shield their wealth from creditors. The harsh rules of bankruptcy being established by this bill will trap hard-working middle-class families, but the unlimited homestead exemption will allow rich debtors to escape," Kennedy argued.

Sen. Chris Dodd, a Connecticut Democrat, said the bill puts a straitjacket on families with children. "Clearly there is a need to reform the bankruptcy laws. But it requires a sense of balance," he said.

His amendment would have made the means test more flexible to help families with children, by allowing larger education payments and insuring that child support payments are not diverted to creditors. It was rejected, 42-58.

All amendments to soften this were rejected. Elderly and filing because of medical bills? Rejected. Job loss? Rejected. Catastrophic illness or death in family? Rejected. Serving in Iraq at National Guard pay that is well below your civilian pay? Rejected.

But if you are wealthy and live in the right state, no problem. You can hide your money.

Indentured servitude, here we come!