Bankruptcy Reform: Designed to Protect Big Business

Who will profit from the new bankruptcy reform laws? The financial services industry and other large business groups, that's who.

These groupings contributed billions of dollars to elect Shrub and other Republican
campaigners in 2000 and 2004, with the end of overhauling the bankruptcy system. They and other large business groupings have got continued to pass millions, rage
statements and anteroom persistently for bankruptcy reform. In March 2005, with the
House and Senate loaded top heavy with Republicans, they succeeded.

The financial services industry includes the banks, credit unions, the American Bank
Association, credit card companies and retailers.

Big business groupings pressuring for statute law include auto shapers such as as the John Ford
Motor Company, General Motors, and DaimlerChrysler. These groupings were willing to
pay billions of dollars and pass many old age lobbying for bankruptcy reform. The
car makers, unhappy with the manner auto loans are handled when an individual data files
for bankruptcy, pushed for reform.

Others who lobbied heavily for reform were car dealers, record labels, and gambling
interests such as as as casinos, many of whom stand for large corps and premier
lenders, such as MBNA Corporation and American Express Company, who
contributed billions not only to stack the political likelihood in favour of the bankruptcy
reform bill, but to elect campaigners sympathetic to their goals. MBNA Corp. and
American Express Co. are among the top donees of the bankruptcy reform.

Bankruptcy reform protagonists reason that debtors seeking relief through bankruptcy
are either purposely gambling the nation's bankruptcy system or they are
irresponsible Spenders who should pay at least a part of their measures if they are
able to. In fact, about one-half of the claims filed for bankruptcy are attributed to
medical costs.

Bankruptcy reform will necessitate most filers to have credit counseling and lessons
on how to better their financial management skills. Bankruptcy reform states that
filers pay for the counseling themselves.

Included in the new measure is a proviso requiring that credit card charge statements
include an illustration of the clip it would take to pay off the balance at a peculiar
rate of interest. Charge statements are also required to provide a toll free number for
the consumer to name and inquire about the length of clip it would take to pay off
the balance if they are only making the minimum monthly payments.