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We must support this now!
Rep. John Conyers, Jr., Rep. Mel Watt, Rep. Jerrold Nadler, and Rep. Sheila Jackson Lee announced today that when Congress returns next Tuesday, they will introduce legislation to protect the thousands of families and small businesses financially devastated by Hurricane Katrina from being penalized by anti-debtor provisions contained in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, scheduled to take effect on October 17, 2005.
Thu Sep 1st, 2005 at 14:09:49 CST
I hope this further explanation is helpful about the bankruptcy bill I will introduce tomorrow and about an FTC investigation I am requesting.
The devastation along the Gulf Coast caused by Katrina and the ripple effects throughout the entire nation are tragic beyond description. What we are witnessing in Louisiana and Mississippi is the truism that when disaster strikes, the gap between rich and poor becomes a chasm.
In today's lagging economy, far too many hardworking Americans are living paycheck to paycheck, just barely getting by. In that tenuous financial condition, many families are only one tragedy away from being devastated by debt. Many of the families who have now lost their homes, livelihoods, and personal possessions will soon be contacted by credit collection agencies demanding the next minimum payment on a credit card.
Unfortunately, the bankruptcy bill recently passed by Congress makes matters far worse for these families. Before the new bankruptcy law was passed, the law recognized that almost all -- if not all -- of these families are hopelessly in debt and that no useful purpose is served by forcing them to remain at the mercy of the credit card companies. Indeed, our society is better served by giving them a fresh start. To prevent this, before the new bankruptcy law was passed, these families could wipe out their debts in bankruptcy and get a fresh start. Under the new law, these families would be subject to a rigid and unjust means test that would arbitrarily deny many the relief they deserve.
The means test would, among other things, deny a disaster victim bankruptcy relief based what the debtor earned before the disaster. The means test would deny a victim relief by counting any disaster assistance funds from the government as the victim's income. In effect, the federal or state government would provide funds to help a victim get back on her feet only to have those funds diverted to credit card collection agencies.
When the bill was considered, my colleague Congresswoman Sheila Jackson Lee offered an amendment in the Judiciary Committee to exempt victims of disasters from the bill. Her amendment was summarily rejected along party lines. The following is a transcript from April 8 of this year:
Ms. JACKSON LEE. My friends, this is a circumstance that will confront all of our States, whether it is a flood, a hurricane, certainly any natural disaster that we can imagine has confronted individual States. We know recently that--we know recently that Florida suffered a historic three hurricanes or more in 2004. Families that are affected by natural disasters such as a hurricane in Florida or the mudslides in California should not have to apply their scarce relief effort monies to bankruptcy debt. The intent in providing Federal and State monies to families who are victims of such natural disasters is to relieve the burden that the disaster has caused, not to increase their net worth.
Bankruptcy reform should address many specific issues, such as the negligent mismanagement of money, but hurt those who are already suffering from flooding or collapsed roof or house that has gone out to sea is absolutely ridiculous.
I'd ask my colleagues to support this, which exempts the benefits that you've received if you have suffered a natural disaster. Again, I started out my concern about this legislation in that it is class warfare. I simply ask my colleagues to find some sense of balance to be able to balance this legislation with those middle-class and working families who are simply trying to make ends meet. We have already denied veterans and those returning from Iraq. We've denied those with catastrophic injuries. I can't imagine that there's not one of us that has not been in a community that has suffered a natural disaster.
I ask my colleagues to support this amendment.
Chairman SENSENBRENNER. Does the gentlewoman yield back?
Ms. JACKSON LEE. I yield back.
Chairman SENSENBRENNER. The question is on the amendment. Those in favor will say aye? Opposed, no? The noes appear to have it. The noes have it. The amendment is not agreed to."
This was a tragic mistake that will be felt by the victims of Katrina unless we act now. That is why I, and Congressman Mel Watt, Jerry Nadler and Congresswoman Jackson Lee will introduce a bill tomorrow to exempt disaster victims from the reach of the new bankruptcy bill. Atrios has the press release.
While nothing the rest of us are experiencing can compare to the suffering of those directly impacted by Katrina, I am also deeply concerned that corporate interests may be taking advantage of this tragedy and price gouging consumers when they fill up their gas tanks. Already, there are reports of gas prices over $4 a gallon and prices rising as much as 88 cents in one day.
With so many Americans struggling in this economy and so many dependent on cars for transportation to work or to school, we should not pay one penny more than the fair market price for gasoline. It is beyond the pale that, as Americans are pulling together to help the victims of Katrina, some would exploit this tragedy for personal profit.
That is why I, along with a number of my colleagues (listed below)have written to the FTC asking for an investigation of this apparent price gouging. The letter follows:
September 1, 2005
Chairman Deborah Platt Majoras
Federal Trade Commission
600 Pennsylvania Avenue, N.W.
Washington, D.C. 20580
Dear Chairman Majoras:
We are writing as members of the House Judiciary Committee, which has jurisdiction over the antitrust laws, to ask that you commence an immediate investigation into reports of price gouging in gasoline markets across the nation.
There are numerous reports of massive increases in gasoline prices. For example, today's Washington Post reports price increases of as much as 88 cents per gallon in a single day. Some stations in Georgia are reported to be charging as much as $6 a gallon. In Illinois, prices are reported to have shot up 50 cents per gallon overnight, and the state attorney general received more than 500 reports of price gouging.
At first blush, it would seem that these increases go far beyond anything justified or relating to the market disruptions caused by Hurricane Katrina. As a result, it would be very helpful if the FTC would look into the various causes of the recent increases, and identify the extent they relate to basic disruptions in supply on the one hand, or price gouging by opportunistic sellers at various points in the supply and distribution chain on the other hand.
You have examined similar issues for Congress in the past after other periods of price increases, and we would find it very helpful if you could complete an analysis for us today based
on current market conditions. As time is of the essence, we would like to receive a status report on any preliminary findings as promptly as possible.
Please respond to the Judiciary Committee Minority Office, 2142 Rayburn House Office Building, Washington, D.C. 20515, telephone number, 202-225-6504, fax number, 202-225-4423.
Sincerely,
John Conyers, Jr.
Jerrold Nadler
Marty Meehan
Linda Sanchez
Anthony Weiner
Debbie Wasserman Schultz
Sheila Jackson Lee
Robert Wexler
Rick Boucher
Chris Van Hollen
Please call your reps first thing in the morning and ask them to support this bill.
Several Senators have contacted me with an interest in introducing the bill asap.
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