September 27, 2005

YBK [Part 20]: From today's New York Times-

Right after Hurricane Katrina struck, several lawmakers - mostly Democrats but including some Senate Republicans - suggested that storm victims along the Gulf Coast should get relief from the new law's stricter provisions, which are intended to screen filers by income and make those with higher incomes repay their debts over several years.

(snip)

But House Republicans, who fought off a proposed amendment that would have made bankruptcy filings easier for victims of natural disasters, said there was no reason to carve out a broad exemption just because of the storm.

Representative F. James Sensenbrenner Jr. of Wisconsin, the chairman of the House Judiciary Committee, rejected the notion of reopening the legislation, saying it already included provisions that would ensure that people left "down and out" by the storm would still be able to shed most of their debts. Lawmakers who lost the long fight over the law, he said, "ought to get over it," according to The Associated Press.

A White House spokesman, Trent Duffy, said the administration "doesn't see a lot of merit" in calls to delay the law's effective date but was considering making allowances for hurricane victims.

In the meantime, many victims of Hurricane Katrina - and the much smaller group ruined by Hurricane Rita - will face a kind of Catch-22. Those who try to beat the Oct. 17 deadline in hopes of filing under the less-onerous current law may find it impossible to do so, because residence rules generally require that individuals seek protection against creditors in their hometowns. (Assuming people in New Orleans can find their lawyers and records, they can file for bankruptcy protection in their bankruptcy court, which has reopened and is sharing space with another court in Baton Rouge.)

Moreover, most people displaced by the storm will probably not know for months if they even need to file for bankruptcy. By that time, the tougher new law will be in force.

"Ought to get over it"!!! These people really are soulless bastards.

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