Democratic Bankruptcy Legislation

The 2005 Bankruptcy Abuse and Prevention Act sent a rapid wave of change through the United States, affecting a considerable number of American families that considered filing for Chapter 7 or Chapter 13 bankruptcy protection. Prior to the passage of the new bankruptcy laws, the proposed bankruptcy legislation was staunchly opposed by most democratic congress members because of the anticipated adverse effects the bankruptcy reform would have on working-class and middle-class Americans.

Some democrats who opposed the 2005 bankruptcy legislation were outraged because of their perception that the media failed to provide comprehensive coverage to the potential pitfalls of the bankruptcy legislation. To make matters worse, eighteen democrats in the U.S. Senate and House of Representatives supported the bankruptcy law's passage, including Minority Leader Harry Reid. A few critics cited Senator Hillary Clinton's failure to vote on the bill. However, many in both chambers of the United States Congress commended Senator Charles Schumer's valiant fight to defeat the ostensibly unfriendly consumer bankruptcy legislation. Some democrats mentioned Senator Schumer's thoughtful strategy of adding poison amendments to the proposed bankruptcy legislation to make it substantially more difficult for people who blow up abortion clinics to declare Chapter 7 or Chapter 13 bankruptcy. Schumer's gallant effort proved effective for a couple of years prior to the bankruptcy legislation's passage. Nonetheless, the systemic failure of the democrats to remain unified in their opposition to the bankruptcy act resulted in the bankruptcy legislation's passage in 2005.

Possibility of Repealing The 2005 Bankruptcy Abuse and Prevention Act

Since the passage of the 2005 Bankruptcy Abuse and Prevention Act, democrats are increasingly becoming impatient with the fluctuating economy, and the marked burden the working-class has endured in the two years since the bankruptcy act's approval. Increasingly, democrats are reminding media sources of congress's failure to approve a comprehensive minimum wage increase. Democrats also point out that the reign of the republicans is nearing its end. Liberals are, with increasing frequency, pointing to the persistent financial, debt, and corresponding legal issues facing a considerable number of Americans. In pointing out the issues, liberals point to the softening house market, the nationwide increase in foreclosures, the increase in bankruptcy filings, the perceived usurious interest rates of the credit card industry, the financial crisis of social security, the increase in inflation, and the inordinate present-time burden borne by America's working class.

Fast-forwarding to the present time, many newly-elected congress members are considering a proposal to repeal the unfavorable consumer bankruptcy legislation. Indeed, the Democratic Party has a diverse support base. According to many in the Democratic Party, the bankruptcy laws are in need of a substantial overhaul, which they hope will provide assistance to many consumers in need of filing bankruptcy and consumer debt relief. Moreover, many democrats view the potential repeal of the bankruptcy legislation as an opportunity to demonstrate that the Democratic Party is committed to supporting the working class and small business owners throughout America.

Currently, many democrats are looking forward to the 2008 elections. Indeed, many democrats hope the 2008 Presidential Candidates take a stand against the reprehensible bankruptcy legislation. Possible supporters of a repeal of the bankruptcy act may include John Edwards, Hillary Clinton, and Barack Obama. Some bankruptcy experts believe a repeal of the bankruptcy laws would have a far greater impact on job creation than tax breaks for the superrich. Democrats also point out that the Republican Party remains extremely cautious going into the new election year. As a result, many democrats believe the support of some republicans in congress concerning a repeal of the bankruptcy laws is a real possibility. Simply put, in today's political landscape, it is a wait-and-see game as to whether any of the democratic candidates will support a repeal of the unfriendly consumer bankruptcy laws. Should any future act be passed, some democrats hope filing Chapter 7 and Chapter 13 bankruptcy will become an option to more individuals throughout the United States.