Well, it took 8 long years but the credit card banks finally got what they wanted – a “reform” to the nation’s bankruptcy system. The Senate bill, which both Senators Biden and Carper in a show of bipartisanship supported, makes it much harder to declare Chapter 7 bankruptcy, and gives creditors much more power to liquidate the assets of Americans.
“The sooner we finish work in the Senate and get the bill to the House, the sooner our bankruptcy system will be focused as it should be on helping those with real need, and less vulnerable to abuse by consumers who have the ability to repay their debts,” said Sen. Charles Grassley (R-Iowa), the bill’s primary author.
And who are those in real need? Why the banks of course, most of which have offices in Delaware and give handsomely to both Democrat and Republican parties, including Senators Carper and Biden.
According to Consumers Union, which bitterly opposed the bill, Congress is set to protect the banks and those running them. For example, modest income debtors face harsh new barriers. Weighed down by unexpected medical bills or the loss of a job? Too bad. The banks need your house and car more than you.
However, should the CEO of that bank be thrown in jail or suffer hard times, he will still be able to declare Chapter 7 bankruptcy, since this legislation allows many affluent debtors to declare bankruptcy and keep multi-million dollar homes.
Even those who don’t own a home are made more vulnerable, since the bill makes it easier for residential landlords to evict a tenant who is in bankruptcy.
I am happy to hear that at a time in our history when America lives under a terror alert, our leaders have the time and energy to legislate against the true evil in our society – the American consumer – and protect those who truly need protection: America’s banks and the executives that run them.
Senators Biden and Carper should be so proud of themselves.