Good Idea, Bad Bill - Bankruptcy reform

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Tomorrow, the House will vote on a Bankruptcy Reform bill. I called Congressman Lamar Smith this afternoon and explained to his aide the details of why I and my family strongly urge him to vote against this bill. Bankruptcy reform is needed to get at the fraudulent abuse of the system. The bill proposed however, will cause hardship for, and servitude to, the banks and credit card companies by hard working, honest Americans who due either to large medical expenses or unavoidable loss of work/significant drop in income, have come up short on paying their bills.

I explained to Mr. Smith that my wife, daughter and I have worked hard and sacrificed much to build our home with our own hands with no mortgage for the express purpose of insuring that our home would always be ours and our daughters. This bill introduced however would negate that security we so looked forward to. If we should fall on hard times, this new bill would allow the banks or credit card companies to force the sale of our home despite the fact that there is no lien on it, no mortgage owed to anyone. This is killing the child in order to cure tonsilitis. Sure when infected, tonsils have to come out. Just as when their are abusers of the Bankruptcy system, those abusers should be denied access to the system. But, ruin whole families and cause them to sell their homes and live on next to nothing due to their loss of a job, or saving a family member's life costing more medical attention than they found they could afford, is just as bad as ending Bankruptcy altogether. Look, the federal government bails out Chrysler and Savings and Loans, and will continue to do so. Why should honest, hard working Americans be an exception to this rule?

Our nation has hit desperate times before, and will likely again in the future. Do we really want the highly profitable banks and credit card companies to trample working Americans right to a decent living just to insure there already high profit margins are guaranteed to be even higher? Many of them already charge 28% interest on borrowers whose credit scores are not stellar despite the fact that many of these people never miss their payments. I know, they did it to us. We are ememplary in paying our debts. We own our home and cars outright, but, because the ratio of our credit card debt to our income is not stellar while we finish building our home, three credit cards whose rates were below 10% have been hiked to 19.9 by two of them, both MBNA and 28.8% by a third, Fleet, now Bank of America.

The lenders are getting their rewards for their risks, amply. There is no need to virtually eliminate the bankruptcy act because a small percentage of Americans abuse the system. And there is certainly no need to allow the usurers an open door to force Americans out of their homes and into the streets should bad times occur beyond their control. I would hope that many, many others will call and urge their representatives to redraft this bill so that it targets abusers and the undeserving, and not all Americans, including those honest and well intentioned.

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This page contains a single entry by David R. Remer published on April 12, 2005 3:46 PM.

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