Atrios - Bankruptcy

Atrios posted this excellent idea for a Democratic response to Katrina, Bankruptcy

Every Dem had better line up to support this, include the Senators from MBNA.

Rep. John Conyers, Jr., Rep. Mel Watt, Rep. Jerrold Nadler, and Rep. Sheila Jackson Lee announced today that when Congress returns next Tuesday, they will introduce legislation to protect the thousands of families and small businesses financially devastated by Hurricane Katrina from being penalized by anti-debtor provisions contained in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, scheduled to take effect on October 17, 2005. Reps. Conyers, Nadler, and Jackson Lee released the following joint statement:

"We are concerned that just as survivors of Hurricane Katrina are beginning to rebuild their lives, the new bankruptcy law will result in a further and unintended financial whammy. Unfortunately, the new law is likely to have the consequence of preventing devastated families from being able to obtain relief from massive and unexpected new financial obligations they are incurring and by forcing them to repay their debt with income they no longer have, but which is counted by the law."

The utter failure of FEMA, the neglect of the levees,... there will be plenty of reckoning and investigating to be done when the immediate crisis subsides. But this idea has the potential to truly help people rebound and recover their lives. It should be a bi-partisan slam dunk. And if the Republicans reject it, they will do so at their peril.