New Bankruptcy Law
Rejection of new bankruptcy law amendments to the Reform Acts of 2005
Although named "Consumer Protection Act", many critics claim the 2005 Act contains only expanded profit potential for large corporate interests, and creates only additional limitations and liability for ordinary citizens. Senator McCain (R-AZ) described the Bush Administration's ardent support of the financial interest of his largest campaign contributors as the "No Lobbyist Left Behind" administration. Democrats were noticeably more derisive, claiming the Act is "ill-conceived, unjust and imbalanced, requiring debtors to defeat Goliath to subsist in poverty."
New Bankruptcy Law Amendments - REJECTED:
Each of the following amendments were offered for inclusion within the S. 256 known as Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, and where rejected by block voting of all Republican Senators:
- March 3, 2005 - Schumer Amendment. No. 42 - To limit the exemption for asset protection trusts favored by wealthy individuals.
- March 3, 2005 - Durbin Amendment. No. 49 - To protect employees and retirees from the common corporate practice of discharging liability for retirement plans, retained earnings and matching funds when businesses file Chapter 11.
- March 3, 2005 - Durbin Amendment. No. 38 - Prohibition against predatory lending practices, and required enforcement of existing consumer protection laws.
- March 3, 2005 - Nelson (FL) Amendment. No. 37 - Provided an exemption of debtors from means testing if financial strain was primarily caused by identity theft.
- March 3, 2005 - Dayton Amendment. No. 31 - Limited interest rates charged to consumers to 30%.
- March 2, 2005 - Corzine Amendment. No. 32 - Grandfather clause to preserve existing bankruptcy laws for individuals experiencing financial strain as caregivers because of disabled family members.
- March 2, 2005 - Kennedy Amendment. No. 28 - Provided an exemption from means testing for individuals whose debts resulted from major injury or illness.
- March 2, 2005 - Kennedy Amendment. No. 29 - Provide an exemption from forced eviction for homeowners whose primary debts arose from medical problems.
- March 2, 2005 - Akaka Amendment. No. 15 - Required disclosure to consumers regarding the effect of making only minimum monthly payments on credit cards.
- March 2, 2005 - Feingold Amendment. No. 17 - Provide enhanced homestead and eviction protection to the elderly citizens living on fixed income.
- March 1, 2005 - Durbin Amendment. No. 16 - Provided service members an exemption from means testing when primary debts arose from usurious and/or illegal interest rates, based on pre-military state of residency.