Ever since I first read the recently passed bankruptcy bill I have been on a rampage about how anyone, let alone Democrats could possibly vote for such an un-democratic piece of legislation. Well, now we are going to find out just how oppressive this bill is when the already screwed hurricaine victims who won't be able to file for bankruptcy before the Oct. 17th deadline...
You can read the entire article here
More on the other side:
By Jonathan Stempel
Thu Sep 1, 6:41 PM ET
NEW YORK (Reuters) - Hurricane Katrina is expected to cause a spurt of bankruptcy filings by storm victims -- and sweeping changes in U.S. bankruptcy laws may leave them even more strapped than they otherwise might be.
The Bankruptcy Abuse Prevention and Consumer Protection Act, which takes effect October 17, includes a slew of rules and restrictions intended to curb abuse. These are expected to make it harder for individuals to file to keep creditors away, and more difficult for businesses to reorganize.
But the law wasn't directed at people who file because of catastrophes such as Katrina, in which people lost homes, businesses and perhaps months of regular paychecks. Katrina has caused widespread devastation in Louisiana and Mississippi and left New Orleans, population 462,269, virtually uninhabitable.
What a suprise, the bill didn't make exceptions for people forced into bankruptcy through no fault of their own.
"People who are seriously affected by this hurricane are not going to be able to file bankruptcy by October 17," said Henry Sommer, co-editor of "Collier on Bankruptcy," a leading reference work. "They have more pressing things in their lives, like survival."
Michigan's John Conyers, the ranking Democrat on the U.S. House of Representatives' Judiciary Committee, and three other House members pledged to soon introduce legislation to provide flexibility for victims of natural disasters in bankruptcy.
Conyers' aides said legislation may be introduced next week, but aides to House Republicans said the law doesn't need amending because it only cracks down on abuse. Aides to Sen. Russ Feingold (news, bio, voting record), a Wisconsin Democrat, said he might try to postpone the October 17 implementation date.
Where are the rest of our Democrats?
Under the new bankruptcy law, individuals who file will face extra paperwork and costs, and many will be subject to a "means test" that will force them to pay off at least some debts. Businesses will face new time limits that could force them to make key business decisions before they're ready.
Some lenders are trying to accommodate Katrina victims already. Ford Motor Co.'s finance arm on Thursday said it will let customers defer three loan payments, up from the two it offered on Tuesday. And banks such as Wachovia Corp. are relaxing some fees and providing loan assistance.
"Banks have a lot of experience dealing with debtors in difficulty because of natural disasters," said Wayne Abernathy, an executive policy director at the American Bankers Association. "The first focus will be on making sure people can meet their immediate financial needs."
Still, Lynn LoPucki, a bankruptcy law professor at the University of California at Los Angeles, said it's hard for debtors to get individualized attention in an event of Katrina's magnitude. "There are simply too many," he said.
Wow. How big of Ford to allow people to defer 3 whole payments for cars that are probably 6-10 feet under water.
The message here is clear: We don't really care why you are bankrupt, it's your own fault you are poor, it's your own fault George Bush stopped upgrading the levees, it's your own fault he started a war that occupied funds and troops that could help, and it's your own fault you didn't listen to Haley Barber "begging" people to leave the city.
Interested to hear your thoughts