We’ve all been focused, and rightly so, on what’s happened to the poor, the old and the sick in NO and the surrounding areas. But yesterday, I was listening to Harvard professor Elizabeth Warren talk about how the bankruptcy bill will effect the average and above-average people, who were able to pack up their cars and get out. What’s going to happen to them?
Think about it. You’ve managed to escape with your family and are now living in a hotel that you’ve charged to your visa. Your house may be destroyed, but your mortgage still has to be paid. You have one of your cars, but the other one is floating down to Mexico. You still have to make the payment. You may have some money saved, but if you are like most Americans, it’s only a small portion of your earnings. Your job is gone. If you’re a small business owner, your business is in ruins. You may have insurance, but it’s probably not going to be enough to cover your expenses for very long. You’re a prime candidate to end up filing bankruptcy.
Oh, but there’s one thing. The bill the credit industry wrote and Congress rubberstamped makes it incredibly difficult and expensive to file for bankruptcy. You have to have a lot of paperwork that you probably left back in your ruined house. At the time the bill was passed, an amendment was offered to exempt people affected by natural disasters. Every Republican voted against that amendment. Every one.
Now they are trying to reinstate the exemption, and I believe they should. But people should be aware that this was discussed before the catastrophe and that the Republicans were against it then.
Elizabeth Warren’s blog on TPMCafe.
