Mark Winston Griffith

The Democrats and Bankruptcy: What’s in Your Wallet?

The bankruptcy bill of 2005 was probably one of the most egregious attacks on working class America in recent memory. It was also was one of the most embarrassing examples of how the credit card lobby carries the US Congress in its own back pocket like a common piece of Visa plastic.

Democrat presidential candidate Christopher Dodd again distinguished himself last week by challenging that shameful moment in U.S. history. Reuters reported that Dodd planned " to introduce a bankruptcy reform bill that would give new relief to individuals overwhelmed by mortgage, medical and student loan debt."

"The Connecticut Democrat said his bill would allow judges to consider the individual circumstances of debtors in bankruptcy cases so that families and children are protected.

"The bill would ensure that medical debts can always be discharged in bankruptcy and that mortgages can be restructured to help borrowers stay in their homes, he said.

"Student loans would also be dischargeable under the bill, and child support and alimony payments would be settled first."

Many of the provisions found in Dodd's proposal can be found in legisative efforts that have been bouncing around Capitol Hill for some time now. But at a time when America's credit health is in serious question and the financial services industry needs to be leashed, Dodd's presidential candidate platform perhaps will encourage the other candidates - Biden was the only Democratic presidential candidate to vote for the 2005 bankruptcy bill - to reverse the destruction of the bankruptcy law.

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Posted at 6:00 AM, Dec 06, 2007 in Economic Opportunity
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