Wednesday, September 07, 2005

Katrina: So, will $2000 stave off bankruptcy? 

I don't think so. If Bush and the Republicans had anything in mind than the Rovian two-fer of a cheap payoff to their victims and a quick fix for their PR problems, they'd rework the Bankruptcy Bill for the benefit of the citizens of New Orleans. (You too, Joe Biden D-MBNA):

Hurricane Katrina survivors whose finances are in shambles may not qualify for federal bankruptcy protection once a new law with tough eligibility restrictions takes effect Oct. 17.

And anyone who intends to file before the new standards take effect must overcome other Katrina complications such as injuries, being moved to out-of-state shelters, the loss of personal financial records and the closure of the five federal courthouses in hurricane-ravaged areas of Louisiana, Mississippi and Alabama.

The Consumer Federation of America and the National Association of Consumer Bankruptcy Attorneys want Congress to pass a one-year waiver of the new law's toughest provisions for victims whose financial problems were caused or aggravated by Katrina or other natural disasters.

The one-year period is important because most post-hurricane bankruptcy filings occur many months after the storm. "Reality starts sinking in," said Bradford Botes, a board member of the National Association of Consumer Bankruptcy Attorneys. "People can't make house payments. People can't make car payments or they missed those payments for a three- or four-month period and that's when foreclosures and repossession actions are initiated."

Democrats in Congress are drafting the legislation. They hope for bipartisan backing, but it's unclear whether Republican members, who strongly supported the tougher bankruptcy legislation, will favor the measure.

(via AP)

And I'm sure Bush and the Republicans will extend the right hand of good fellowship to this bipartisan effort...

corrente SBL - New Location
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