Outraged over the inaction on the part of the Bush Administration to respond aggressively to the mortgage crisis, Sen. Chris Dodd today announced that he will call for the reform of a part of the current bankruptcy law which prevents judges from aiding those in default of their loans by restructuring their payments. Dodd also said that he planned to call for a repeal of other anti-consumer provisions enacted in recent bankruptcy "reform" efforts and in the coming weeks will unveil his own bankruptcy reform plan that protects consumers, not creditors.
Yesterday, The New York Times editorialized about the housing market, saying that for the first time since the Carter Administration, homeownership is set to decline under President Bush's tenure, and Congress and the President need to work on bankruptcy reform legislation to avoid mass foreclosures and a complete collapse of the housing market.
"It's completely unacceptable to sit on the sidelines while millions of Americans are losing their homes, and with it, their piece of the American Dream," said Dodd. "While it's clear that the Administration thinks it is already doing enough to stem the tide of this problem, I would guess the people who lost their homes while President Bush was in office would beg to differ. As a Senator and Banking Committee Chairman, I am doing all I can to help families across the country at risk of losing their homes. But the President has the ultimate authority to act now to stop the market from collapsing, and millions of American families from losing their homes. His dereliction to do so is unconscionable."
Last weekend in Iowa, Senator Dodd, who also chairs the Senate's Banking, House and Urban Affairs Committee, released his homeownership plan, which would, among other things, increase opportunities for homeownership by stabilizing the mortgage and financial markets and protect homeowners from unscrupulous lenders and provide assistance to victims of predatory loans to help them keep their homes.
Comments
This is awesome news! The bankruptcy laws in this country are a menace. There is too uncomfortable of a merger between big banks and the federal government. However, that is not the only perfidy on the horizon. American's are on the brink of figuring out the Federal income tax is a fraud. The IRS tax evasion case loss is up 300% because people are figuring out there is no law.
See my latest blog of a Loisiana Attorney at www.rfrank118.com/blog.htm on Tues.
This guy turned the IRS on its head. Is Chris Dodd planning to comment on his position regarding the income tax? If something is not done fast than I will assume that he agrees with the Ron Paul Libertarians. They have been consistently revealing a very nasty little secret about our country. What is his position on the 16th Amendment? Is there a law requiring a person to pay income tax or not?
Remind your boss that the 18th Amendment failed because courts could not get convictions. Looks like the 16th is looking more and more like the 18th.
If the IRS pops there goes the 400+ Billion in interest to the Federal Reserve Bank's secret owners. That should pretty much distract them from bad loans and bankruptcies. What do you think?
I think he should help only if the taxes are apportioned back to the states. If he agrees it is wrong to give 4-5 months of our income to some rich banker as interest on FIAT currency, than he should let the IRS sink.
Rocco J. Frank Jr.
Bankruptcy is too easy -- cut it out! It has become an easy way out for those people who are too irresponsible to manage their money and live way above their means. While some people may seriously be forced to file because of medical bills, many file simply because they have not had the self-control to manage their credit cards, yet they still want to keep their million dollar house when they have a $30,000/year income. That is unrealistic and unfair to those of us who live within our means and yet struggle because of state and federal taxes, local property taxes, and high prices.
"Bankruptcy is to Easy"
Most people earning $30,000 live in a trailer home. Extended credit from institutions at high interest rates and even higher fees these people find themselves over extended. It may be due to an illness, job loss or something as simple as a speeding ticket. Once upsidedown on debt, the secondary market joins the feeding frenzy, pay day loans, H&R Block Tas rebate a states lottery all offer a way out. The lack of discipline, basic financial knowledge is not an excuse, but what we don't need are laws protecting the haves. The abuses and loop holes are not and never were abused by the $30,000 year income families. Once in bankruptcy this income group will be strapped with higher rates and fees for the next decade. How easy is that!
I am happy to hear that there is an attempt to reverse some of the provisions of the bankruptcy bill. I am wondering when the bill drafted by McCaskill, Levin and Dodd on reigning in the abusive, predatory practices of the Credit Card Industry will be sent to the floor? Reigning in the loan shark rates and predatory practices alone will make a huge- immediate- difference in people's lives. Why it is being held up is amazing. This is relief that can be given now. Senator Dodd, please bring it to the floor for a vote and honor your promise to help us out.
Maybe it's time for Senator Dodd to do something to help us all = like reforming the tax code or just going to a consumtion tax alone. Instead of bailing out that part of the public that knew ahead of time they could not afford to buy the homes they bought. Stop trying to buy votes, Senater Dodd, and do something to help all the people. Credit Card companies have a hugh lobby, is it too much to ask that credit card rates be cut to help the masses. Again Do Something To Help Everyone.
Jacki Benvenuto
The entire bancruptcy system is out of control. The system was established for those who fell on hard times because of a health crisis or other unavoidable circumstances. However, most of the people in bancruptcy are just lazy-ass people who want everything, but want someone else to pay for it. There is no excuse for overspending, then dumping the bills on someone else. Here's a nice little rule.....if you don't have the cash, don't buy it. Perhaps Senator Dodd should establish a fund out of his own pocket for those who are losing their houses, or feel they can't pay their bills for some unknown reason. Who do you think will pay for this? There's no such thing as a free lunch!! And if you don't like predatory lenders, payday loans or other unscrupulous acivities, put a stop to it. The federal government has allowed off-breed, financial organizations to do anything they want without having to adhere to the strict regulations that banks must follow, all in the name of competition. Now that there is a crisis (big surprise!), the banks will be asked to bail everyone out, just like they did when all the S&L's crashed years ago. This will continue, as long as there are people like Senator Dodd who want to use things like this for some political gain. No surprise that he is a Democrat. Somehow this is Bush's fault? I know, let's raise taxes and give the money to those who refuse to work for a living....there's a new idea we haven't heard before! Show us how much you really care Senator....start the housing crisis fund with your own money and quit trying to spend mine! And those of you with excessive credit card debt...pay it off, throw the cards away and start using cash!!!!