The Bankruptcy and Consumer Protection
Acts of 2002 & 2005 Revisited
February 22, 2010
As we have seen during these past 18 months with rising bankruptcies due
to health care expenses, and the bubble bursting economy, bankruptcy
laws have become a critical issue for many of our friends, neighbors,
and relatives.
Provisions of the Bankruptcy Act of 2002 included a measure that made it
more difficult for debtors to erase their obligations under Chapter 7,
and instead forced more debtors into Chapter 13 repayment plans.
While Democrats voted against this bill 2 to 1, Congressman Larsen
joined the Republicans and voted to pass this bill.
See Roll Call Vote 484
One of the Reform Act’s controversial provisions was a means test that
pushed more Chapter 7 (liquidation) debtors with financial means into
Chapter 13 (reorganization). Many argued the policy change “had no
public welfare justification. In effect it will be a transfer of income
from bankrupt individuals to very profitable corporations.” William
Waller, Kickin’em While They’re Down: Consumer Bankruptcy Reform, J.
ECON. ISSUES, Dec. 1, 2001, at 15, available at 2001 WL 21300828.1
While the 2002 Bankruptcy Abuse Prevention and Consumer Protection Act of 2002 did not receive a great deal of attention in the media, the 2005 Bankruptcy and Consumer Protection Act did. It was well known at the time that MBNA (Mastercard) was behind the changes in the law. After years of mailing out credit cards to every Tom, Dick and Harry with little, if any, verification of their credit worthiness, they turned to the lawmakers to rectify their error of judgment.
Much was attempted in the Senate to reduce to impact of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, but all were rejected by the Republican majority along with a few Democrats. The Senate bill was subsequently adopted and passed by the House of Representatives with an "aye" vote by Congressman Larsen, who, again, voted with the Republican majority. See Roll Call Vote 108
For months and months we've watched GOP hypocrisy (and lies) being repeated over and over in Washington, D.C. and elsewhere across the country with little push back from the Dems or the media.
Beyond being the party of "no," or the party of obstruction, the Republican Party has simply become a party of bullies.
As a Democrat, I find that offensive. As a mother who has had to deal with bullies going after my own children, I am moving past offensive and annoyance to out and out, into it's time to protect my young mode.
And the one lesson anyone who has ever dealt with a bully must eventually learn, is that win or lose, you must stand up to them. Standing up to them 99% of the time takes away their power of control and instilling fear and that is really what it is all about...control and fear.
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No More Politics as Usual