Well, now that it is official that Vice President Joe Biden will not be running for President of the United States anytime soon, he will be able to “save face” from one of his legislative blunders involving creditors.
The banking lobby, which is one of the most powerful in Washington D.C., pushed through the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) back in April of 2005, which simply put, made it a lot harder for consumers to file for bankruptcy protection. The bill, which then Senator Joe Biden helped push through was a crushing blow to the middle class in that it made:
- A new “means test” was established to determine whether folks who were experiencing a financial hardship, such as high credit card debt, were now subject to eligible to file for Chapter 7 bankruptcy.
- Those that did pass the means test were required to take courses in financial management.
- However, the worse part of the bill was the prioritization of credit card debt repayment over child support repayment. This then forced women who were owed back child support to negotiate with credit card companies first rather than concentrate on the debts owed to them by their former husbands.
- Finally, the word “debtor” written in the old law was changed to “household” in the new law. This then led to a completely new means test, which now has to take into account the earnings of an entire household, rather than just one debtor.
If you remember, it was the big banks that received TARP monies under the so-called government bailout, while everyday Americans got hammered by a recession, the housing market turned upside down and numerous job losses, when the economy went sour. Americans received nothing, let me repeat that, nothing, other than this bad law that Joe Biden and debt cronies pushed through, so his state, Delaware would become the “home” of most of the major banks/creditors.
Since Mr. Biden has decided not to run for President, he will not have to answer questions about this horrendous bill at the moment, or any others he was a part of in Washington.
If you or anyone you know could use help with high amounts of credit card debt, Nationwide Debt Reduction, Inc. could be your solution. You may call us toll free at 800-890-6658 PST, or visit our web site at www.nationwidedr.com and fill out a form to have us contact you when it is more convenient for you.