BAPCPA (Don’t Ask) Bankruptcy and Presidential Politics
By Kurt O'Keefe, Attorney at Law on Aug 9, 2007 in General Bankruptcy Information
My second favorite blog, Instapundit, 5:32 p.m. yesterday, references Senator Biden and the Bankruptcy Reform effective 2005.
Crying “accountability, personal responsiblity” the creditor lobby finally got their legislation, intended to make filing bankruptcy, especially Chapter 7, more expensive, more difficult, and out of reach for many.
Effective advocacy by the bankruptcy debtor bar has mitigated many of the intended effects, but the excessive paperwork hurdles have forced those of us who do good work to put in more hours and charge higher fees. The political problem is that everyone, including my bankruptcy clients, thinks people should pay their bills. There is no political advantage to appearing to advocate not re-paying money you have borrowed. Of course, Congress, under either party, has led the world in spending money it did not have.
The vast majority of people want to pay their debts.
What happens when they cannot? The bottom line is, if you don’t have the money to repay, your intent is irrelevant. What can you do?
That is where the bankruptcy laws come in. The Constitution directs that Congress establish uniform laws of bankruptcy.
As part of your review of the Presidential candidates, check out their past and present views on bankruptcy legislation. You may not think it can happen to you, but neither did most of the people who filed bankruptcy this year.
The piper is being paid, as the Dow is down 200 points as this is being written. How is the re-allocation of resources going to be accomplished?
What is a fair way to work through these problems? A bailout for Wall Street firms while the sub-prime mortgagors are foreclosed and evicted?
If you liked that post, then try these...
Who is the Chapter 13 Bankruptcy Trustee in Kansas City, Kansas? by Jill Michaux, Kansas Bankruptcy Attorney
Chapter 13: No Minimum Time Length For The Ninth Circuit: Part 2 of 2. by Michael G. Doan, San Diego Bankruptcy Attorney
Part Four: Kinds Of Income Reported In Bankruptcy; What Is CMI, Also Known As Means Test Income? by Susanne Robicsek, North Carolina Bankruptcy Attorney
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