| WASHINGTON
- February 9 - Anticipating Republican plans to rush legislation to
overhaul the bankruptcy code (S. 220) to the Senate floor next week, U.S.
Senator Paul Wellstone (D-MN) today wrote Majority Leader Trent Lott to press
for numerous amendments to be allowed on both sides when the bill does come up
for consideration, and to insist on his rights as a Senator to full and open
debate. Over the past two years, Wellstone has sucessfully led Senate
opposition to the bill, written largely by the credit card industry, which seeks
to shred the safety net protections offered to working families by bankruptcy
laws.
"I am troubled by reports that you intend to move the bill through the Senate
without substantive modifications. In light of the dramatic shortcomings of
this legislation, I believe the Senate must allow time for numerous amendments
on both sides when this bill does come up for consideration. It may even be
appropriate to debate the illogic of your haste in scheduling this measure.
Naturally, I would view with great concern efforts to move this harsh bill
through expedited means on the Senate floor and will insist my rights to full
and open debate," Wellstone said.
Fundamentally, S. 220 is ill-conceived and unjust. It imposes harsh penalties
on families who file for bankruptcy in good faith as a last resort, and it
addresses a "crisis" that appears to be self correcting. It rewards the
predatory and reckless lending by banks and credit card companies which fed the
crisis in the first place, and it does nothing to actually prevent bankruptcy by
promoting economic security in working families. As a result, a broad coalition
of consumer groups, unions, women's and children's groups, civil rights
organizations, and religious groups have united in opposition to this
legislation.
"I continue to be puzzled by the false urgency for this bill. As bankruptcy
rates fell steadily in the past two years, the rhetoric about the "crisis" in
filings became even more shrill. But even more perversely, projected increases
in bankruptcy filings for the coming year – as a result of layoffs and falling
income due to a cooling economy – is now being used to justify rolling back the
bankruptcy safety net. In other words, now that more working Americans will be
forced to file for bankruptcy because of circumstances beyond their control, we
should make it harder for them to do so. I for one will have difficulty making
that argument to the newly unemployed steelworkers in my state," wrote
Wellstone.
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