Assault on Bankruptcy System

Throughout this site, we have tried to present objective information on bankruptcy and the respective rights of debtors and creditors.  This page is an exception:  this page expresses our profound opposition to bankruptcy legislation now in Congress. This legislation is little more than an attempt to use the laws of the U.S. to protect credit card companies and car lenders from their own bad business practices by preventing individuals from getting meaningful relief in bankruptcy.

    These "reform" bills assume that the rising number of bankruptcies is attributable to scheming, dishonest individuals who use credit with the intention of discharging their repayment responsibilities in bankruptcy.  They further assume that VISA and MasterCard should be protected from the consequences of issuing preapproved cards to one and all, without any inquiry into the borrower's ability to repay the offered credit.  (There are rafts of stories of infants and dogs who have been issued preapproved credit cards based on their "excellent credit").

    In my experience, the vast majority of those who file bankruptcy do not feel good about filing bankruptcy;  have struggled for a long time to pay off the debt; and don't qualify for any meaningful repayment plan.  Many have been as foolish to accept the proffered credit cards as the issuers were to proffer them.  Statistically, 90% have suffered job loss, divorce, or medical expenses. 

    The supposed reforms of the bankruptcy system will deprive our society of the important safety valve that bankruptcy represents:  the chance to start over to be productive and self reliant.  Our country does not benefit by having debt ridden, disheartened citizens with no real prospect of ever paying off mountains of debt incurred in part because our consumer society urges instant gratification.  Remember the Discover card ad:  "Discover, when life can't wait."?

    You can learn more about the changes proposed in the bankruptcy laws by following the link at the bottom of this page.

    Then, I urge you to make your opposition to these changes heard today by contacting your Senator and Congressional representative and the president immediately.  Otherwise only the voices (and money) of the credit card lobby are heard in Washington.

Cathy Moran