Bankruptcy Reform: Designed to Protect Big Business -

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Bankruptcy Reform: Designed to Protect Big Business

Bankruptcy Reform: Designed to Protect Big Business

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

These groups contributed millions of dollars to elect Bush and other Republican candidates in 2000 and 2004, with the goal of overhauling the bankruptcy system. They and other big business groups have continued to spend millions, rage arguments and lobby 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 groups pressuring for legislation include auto makers such as the Ford Motor Company, General Motors, and DaimlerChrysler. These groups were willing to pay millions of dollars and spend many years lobbying for bankruptcy reform. The car makers, unhappy with the way auto loans are handled when an individual files for bankruptcy, pushed for reform.

Others who lobbied heavily for reform were car dealers, record labels, and gaming interests such as casinos, many of whom represent large corporations and prime lenders, such as MBNA Corporation and American Express Company, who contributed millions not only to stack the political odds in favor of the bankruptcy reform bill, but to elect candidates sympathetic to their goals. MBNA Corp. and American Express Co. are among the top beneficiaries of the bankruptcy reform.

Bankruptcy reform supporters argue that debtors seeking relief through bankruptcy are either purposely gaming the nation's bankruptcy system or they are irresponsible spenders who should pay at least a portion of their bills if they are able to. In fact, about half of the claims filed for bankruptcy are attributed to medical costs.

Bankruptcy reform will require most filers to receive credit counseling and lessons on how to improve their financial management skills. Bankruptcy reform states that filers pay for the counseling themselves.

Included in the new bill is a provision requiring that credit card billing statements include an example of the time it would take to pay off the balance at a particular rate of interest. Billing statements are also required to supply a toll free number for the consumer to call and inquire about the length of time it would take to pay off the balance if they are only making the minimum monthly payments.

Citizen advocate Suzanne Arthur highly recommends the Repair Bad Credit Newslog, for news and further information on consumer debt and repairing credit scores. Go to: Bad Credit Repair Newslog

In The News:

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.afrol.com/articles/31882cid=0ei=Huw1SfTVPKDM8AS825i4DQusg=AFQjCNHkPKRFWjtLkGZeLgw5P_kRlKBZUATogo qualifies for bdebt relief/b/abrfont size=-1font color=#6f6f6fafrol News,nbsp;Lesothofont size=-1 class=ima href=/a/fontnbsp;-/font nobr7 hours ago/nobr/fontbrfont size=-1afrol News, 2 December - Togo has been approved for bdebt relief/b under enhanced Heavily Indebted Poor Countries, after reaching a decision point under the b.../b/font/div/font/td/tr/table

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://economictimes.indiatimes.com/News/Economy/Policy/Andhra_pays_for_fiscal_profligacy_may_be_denied_debt_relief/articleshow/3782142.cmscid=0ei=Huw1SfTVPKDM8AS825i4DQusg=AFQjCNE-NeZ9nnPdb6iGyw1GQxFzyQbk7QAndhra pays for fiscal profligacy, may be denied bdebt relief/b/abrfont size=-1font color=#6f6f6fEconomic Times,nbsp;Indiafont size=-1 class=ima href=/a/fontnbsp;-/font nobrDec 1, 2008/nobr/fontbrfont size=-1In FY08, the state got a bdebt/b-brelief/b of around Rs 1889 crore. “We have been attaining a revenue surplus despite huge allocations for revenue expenditure b.../b/font/div/font/td/tr/table

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.thepeninsulaqatar.com/Display_news.asp%3Fsection%3DLocal_News%26month%3DNovember2008%26file%3DLocal_News2008112965733.xmlcid=1276145671ei=Huw1SfTVPKDM8AS825i4DQusg=AFQjCNEYTs1nvq1tf29-6nM3XAJ_XunkWQimg src=http://news.google.com/news?imgefp=PbocWWorfkUJimgurl=www.thepeninsulaqatar.com/images/November2008/ssssbkair.jpg width=80 height=57 alt= border=1brfont size=-2Peninsula On-line/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://7thspace.com/headlines/299085/wealthy_nations_others_behind_financial_crisis_must_take_responsibility_round_table_on_debt_told.htmlcid=1276145671ei=Huw1SfTVPKDM8AS825i4DQusg=AFQjCNHpcOPhCXiWJHXDqdqBWUjHySgDOAWEALTHY NATIONS, OTHERS BEHIND FINANCIAL CRISIS MUST TAKE b.../b/abrfont size=-1font color=#6f6f6f7thSpace Interactive (press release),nbsp;NYfont size=-1 class=ima href=/a/fontnbsp;-/font nobr9 hours ago/nobr/fontbrfont size=-1In introductory remarks, moderator Portugal said significant advances had been made since Monterrey, particularly on bdebt relief/b for the poorest countries. b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://mediaglobal.org/article/2008-12-02/amidst-financial-meltdown-doha-conference-gives-developing-countries-a-voicecid=1276145671ei=Huw1SfTVPKDM8AS825i4DQusg=AFQjCNE93bz5Py3dO12NtSBfnLrpjlIbUAAmidst financial meltdown, Doha Conference gives developing b.../b/a font size=-1 color=#6f6f6fnobrMediaGlobal/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://businessmirror.com.ph/index.php%3Foption%3Dcom_content%26view%3Darticle%26id%3D2682:recession-must-not-lead-to-human-crisis%26catid%3D23:topnews%26Itemid%3D58cid=1276145671ei=Huw1SfTVPKDM8AS825i4DQusg=AFQjCNEi-jswPpOYD1IAa96R3PUw-6w9gg‘Recession must not lead to human crisis’/a font size=-1 color=#6f6f6fnobrBusiness Mirror/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.usaid.gov/press/releases/2008/ps081130.htmlcid=1276145671ei=Huw1SfTVPKDM8AS825i4DQusg=AFQjCNHYnYhshF_96HROBdrot1iANXgFywPress Statement From USAID Administrator, Henrietta H. Fore/a font size=-1 color=#6f6f6fnobrUSAID (press release)/nobr/font/fontbrfont size=-1 class=pa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.capitalfm.co.ke/business/Local/Kenya-committed-to-Monterrey-Consensus-1210.htmlcid=1276145671ei=Huw1SfTVPKDM8AS825i4DQusg=AFQjCNGFuNLdwOpFDnmtXycZCqms9U_QNAnobrCapital FM/nobr/anbsp;- a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.kbc.co.ke/story.asp%3FID%3D54181cid=1276145671ei=Huw1SfTVPKDM8AS825i4DQusg=AFQjCNH8IZeyezYgww4XV7Te-FcdWY3rNwnobrKenya Broadcasting Corporation/nobr/a/fontbr/font class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1276145671hl=ennobrall 362 news articles/nobr/a/font/div/font/td/tr/table

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://rismedia.com/wp/2008-12-01/know-the-details-of-the-mortgage-forgiveness-debt-relief-act-2/cid=0ei=Huw1SfTVPKDM8AS825i4DQusg=AFQjCNF44IdZ4fRFNR2vJ8d0tXo3_0pt7AKnow the Details of the Mortgage Forgiveness bDebt Relief/b Act/abrfont size=-1font color=#6f6f6fRisMedia.com (press release),nbsp;CTfont size=-1 class=ima href=/a/fontnbsp;-/font nobrDec 1, 2008/nobr/fontbrfont size=-1b.../b in December 2007, Congress stepped in to provide temporary brelief/b in the form of forgiving this bdebt/b, but only for the 2007, 2008 and 2009 tax years. b.../b/font/div/font/td/tr/table

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.expressbuzz.com/edition/story.aspx%3FTitle%3DGovt%2Bto%2Brelease%2BRs%2B21.43%2Bcr%2Bfor%2Bdebt%2Brelief%26artid%3D1lszTVk554Y%3D%26SectionID%3D1ZkF/jmWuSA%3D%26MainSectionID%3DfyV9T2jIa4A%3D%26SectionName%3DX7s7i%257CxOZ5Y%3D%26SEO%3Dcid=0ei=Huw1SfTVPKDM8AS825i4DQusg=AFQjCNElCDJpVVqzP6R_j-WRlIPx5pMwPwGovt to release Rs 21.43 cr for bdebt relief/b/abrfont size=-1font color=#6f6f6fExpress Buzz,nbsp;Indiafont size=-1 class=ima href=/a/fontnbsp;-/font nobr20 hours ago/nobr/fontbrfont size=-1THIRUVANANTHAPURAM: As per the recommendations of the Farmer’s bDebt Relief/b Commission, the Government has disbursed Rs 14.11 crore so far, and it has been b.../b/font/div/font/td/tr/table

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.thisdayonline.com/nview.php%3Fid%3D129604cid=0ei=Huw1SfTVPKDM8AS825i4DQusg=AFQjCNFteZdRSKH6acUZxAMeh23fhEyZJAHIPC: Togo Gets bDebt Relief/b/abrfont size=-1font color=#6f6f6fTHISDAY,nbsp;Nigeriafont size=-1 class=ima href=/a/fontnbsp;-/font nobrNov 30, 2008/nobr/fontbrfont size=-1The statement said that Togo would receive interim bdebt relief/b from certain creditors, but in order to qualify for irrevocable bdebt relief/b at the completion b.../b/font/div/font/td/tr/table

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,,contentMDK:21993683~pagePK:64257043~piPK:437376~theSitePK:4607,00.htmlcid=1276399584ei=Huw1SfTVPKDM8AS825i4DQusg=AFQjCNEeOF3aqt3IZxT2SLFvI9XaJb032QHome gt; News gt; World Bank Launches Facility to Prevent .../abrfont size=-1font color=#6f6f6fWorld Bank Group,nbsp;DCfont size=-1 class=ima href=/a/fontnbsp;-/font nobrNov 30, 2008/nobr/fontbrfont size=-1The Bank also called on donor countries to meet their bdebt relief/b commitments. “The bdebt relief/b provided by the World Bank and other creditors to heavily b.../b/font/div/font/td/tr/table

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.monitor.co.ug/artman/publish/business/Parliament_warns_govt_against_external_debts_76108.shtmlcid=0ei=Huw1SfTVPKDM8AS825i4DQusg=AFQjCNEiCXptY-cbJtqRqZYtdc6YjR28OQParliament warns govt against external debts/abrfont size=-1font color=#6f6f6fDaily Monitor,nbsp;Ugandafont size=-1 class=ima href=/a/fontnbsp;-/font nobr4 hours ago/nobr/fontbrfont size=-1b.../b 100 per cent Uganda’s bdebt/b under the Highly Indebted bDebt Relief/b initiatives and the 2006 Multilateral bDebt Relief/b initiative less than five years ago. b.../b/font/div/font/td/tr/table

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