Florida’s Bill Nelson voted for cloture on the bankruptcy bill today, helping to ensure that it will move to the house where it should pass in a few weeks.
The bill would disqualify many families from taking advantage of the more generous provisions of the current bankruptcy code that permit them to extinguish their debts for a “fresh start.” It would also impose significant new costs on those seeking bankruptcy protection and give lenders and businesses new legal tools for recovering debts.
The bill still allows wealthy individuals to shelter virtually limitless wealth through various tricks, and it encourages violent anti-abortion protesters to declare bankruptcy in order to avoid paying hefty and well deserved court imposed fines and settlements.
The Senate on Tuesday first defeated an amendment that would have prevented violent protesters at abortion clinics from using the bankruptcy laws to shield themselves from judgments awarded in civil lawsuits. That amendment, which lost by a vote of 53 to 46, had threatened to derail the legislation. The senators then voted 69 to 31 to limit debate and cut off any effort to kill the legislation by filibuster.
……“This bankruptcy bill is mean-spirited and unfair,” said Senator Edward M. Kennedy, Democrat of Massachusetts. “In anything like its present form, it should and will be an embarrassment to anyone who votes for it. It’s a bonanza for the credit card companies, which made $30 billion in profits last year, and a nightmare for the poorest of the poor and the weakest of the weak.”
In a letter to Congress two weeks ago, 104 bankruptcy law professors predicted that “the deepest hardship” would “be felt in the heartland,” where the filing rates are highest – Utah, Tennessee, Georgia, Nevada, Indiana, Alabama, Arkansas, Ohio, Mississippi and Idaho.
Critics also said the measure fails to do anything to curb abusive bankruptcy practices by wealthy families, who can create special trusts to shelter their assets, and by corrupt companies like Enron and WorldCom, which were able to find favorable bankruptcy courts and deprive many of their employees and retired employees of benefits. The Senate defeated a series of amendments proposed by Democrats that sought to address those issues.
“The bill has a real bias,” said Senator Charles E. Schumer, Democrat of New York, whose proposal to close a loophole that permits wealthy people to shelter assets through a special trust was defeated last week. “It deals with abuses in bankruptcy by one group but not with another group.”
Bill Nelson should be ashamed.
Make no mistake about it, today’s vote was a cynical surrender to monied interests, and those who voted ‘Yea’ hope nobody will remember come election time. If this bill ultimately passes–and it probably will–sick people will be squeezed, elderly people will lose their homes and military members will go from fighting in Iraq to fighting creditors at home. Oh, and violent anti-abortion protesters will be able to declare bankruptcy to avoid paying fines.
But campaign coffers will swell.
Speaking of which, the Credit Card Corps certainly earned their money today: Senators Tom Carper (D-Delaware), Joe Biden (D-Delaware), Ben Nelson (D-Nebraska) and Tim Johnson (D-South Dakota) all voted for cloture. Long-time fence-sitters Senators Mary Landrieu (D-Louisiana) and Blanche Lincoln (D-Arkansas) also got in the act, as did someone we thought was a Consumer Champion: Sen. Bill Nelson (D-FL).
Why does Bill Nelson hate American consumers?