The "Bankruptcy Reform Act of 2005" Has Increased Foreclosures: Who Voted For It

[Better Believe It]

Bankruptcy Reform Bites Back
For consumers, debt relief is harder to come by. And that's adding to housing woes
By Christopher Farrell
Business Week
October 29, 2007


In past periods of economic turbulence, American households were able to escape mountains of bad debt—and keep their homes—by declaring bankruptcy. During the weak growth years from 2001 to 2003, for example, nonbusiness bankruptcy petitions averaged roughly 1.5 million per year. Lenders complained bitterly that bankruptcy was too easy, but because financially stressed Americans could write off their credit card and other consumer debt, they had more money available to pay their mortgages.

But today's growing problem in the housing market is different—foreclosures are soaring, while bankruptcies, though clearly on the upswing, are running roughly at half the 2001-2003 pace. The reason: A new bankruptcy law, approved by Congress in 2005 after years of debate, makes it much harder for households to get out from under their consumer debt. The result: More people being forced to walk away from their homes, leaving lenders holding the bag. Perversely, a law intended to help the financial industry may be damaging the housing sector, creditors and borrowers alike. "It doesn't matter what you think of the purpose of the new bankruptcy law. The timing is bad," says Susan M. Wachter, professor of real estate at the Wharton School of Business.

The old bankruptcy law, in effect since 1978, was considered extremely housing-friendly. Most distressed borrowers favored filing under Chapter 7, essentially cheap, quick debt liquidation. In practice, most got to keep their homes, while the rest of their property and assets were sold off to pay a portion of unsecured debts such as credit-card and medical bills. When the assets ran out, the remaining loans were canceled—although some debts were off limits, like student loans and child support. Future paychecks could go to mortgage payments.

By contrast, the new law was designed to protect creditors. For one thing, only low-income borrowers can file for Chapter 7, which wipes out debts. The amended law pushes more people into Chapter 13, which forces households to accept 3-5 year repayment plans on all debts—secured and unsecured. In other words, they're still trying to make payments on car, credit card, medical, and other bills that used to be discharged in Chapter 7. That makes meeting the mortgage more onerous. Filing for Chapter 13 temporarily halts foreclosure proceedings, but the protection only lasts as long as the borrower is making mortgage payments.

Another problem: Under current law, bankruptcy courts don't have the option of reducing the payments on the mortgage for a primary residence. That means anyone who took out a subprime loan is stuck, unless they want to walk away. "If you file for bankruptcy, you don't get relief on the mortgage," says Michelle J. White, an economist at the University of California at San Diego.

http://www.businessweek.com/magazine/content/07_44/b4056080.htm

So who voted for this reactionary bill that has enabled lenders to throw hundreds of thousands out of their homes?

First up, the House of Representatives.

S 256 YEA-AND-NAY 14-Apr-2005
QUESTION: On Passage
BILL TITLE: Bankruptcy Abuse Prevention and Consumer Protection Act

Yeas Nays Not Voting
Republican 229 3
Democratic 73 125 4
Independent 1
TOTALS 302 126 7

---- YEAS 302 ---

(Republicans in roman; Democrats in italic; Independents underlined)


Aderholt
Akin
Alexander
Andrews
Baca
Bachus
Baird
Baker
Barrett (SC)
Bartlett (MD)
Barton (TX)
Bass
Bean
Beauprez
Berry
Biggert
Bilirakis
Bishop (GA)
Bishop (UT)
Blackburn
Blunt
Boehlert
Boehner
Bonilla
Bonner
Bono
Boozman
Boren
Boswell
Boucher
Boustany
Boyd
Bradley (NH)
Brady (TX)
Brown (SC)
Brown-Waite, Ginny
Burgess
Burton (IN)
Buyer
Calvert
Camp
Cannon
Cantor
Capito
Cardoza
Carter
Case
Castle
Chabot
Chandler
Chocola
Cleaver
Coble
Cole (OK)
Conaway
Cooper
Costa
Cox
Cramer
Crenshaw
Crowley
Cubin
Cuellar
Culberson
Cunningham
Davis (AL)
Davis (FL)
Davis (KY)
Davis (TN)
Davis, Jo Ann
Davis, Tom
Deal (GA)
DeLay
Dent
Diaz-Balart, L.
Diaz-Balart, M.
Doolittle
Drake
Dreier
Duncan
Edwards
Ehlers
Emerson
English (PA)
Etheridge
Everett
Feeney
Ferguson
Fitzpatrick (PA)
Flake
Foley
Forbes
Ford
Fortenberry
Fossella
Foxx
Franks (AZ)
Frelinghuysen
Gallegly
Garrett (NJ)
Gerlach
Gibbons
Gilchrest
Gingrey
Gohmert
Gonzalez
Goode
Goodlatte
Gordon
Granger
Graves
Green (WI)
Green, Al
Gutknecht
Hall
Harman
Harris
Hart
Hastert
Hastings (WA)
Hayes
Hayworth
Hefley
Hensarling
Herger
Herseth
Higgins
Hinojosa
Hobson
Hoekstra
Holden
Hooley
Hostettler
Hoyer
Hulshof
Hunter
Hyde
Inglis (SC)
Israel
Issa
Istook
Jefferson
Jenkins
Jindal
Johnson (CT)
Johnson (IL)
Johnson, Sam
Jones (NC)
Keller
Kelly
Kennedy (MN)
Kind
King (IA)
King (NY)
Kingston
Kirk
Kline
Knollenberg
Kolbe
Kuhl (NY)
Larsen (WA)
Latham
LaTourette
Leach
Lewis (CA)
Lewis (KY)
Linder
LoBiondo
Lucas
Lungren, Daniel E.
Mack
Manzullo
Marchant
Matheson
McCarthy
McCaul (TX)
McCotter
McCrery
McHenry
McHugh
McIntyre
McKeon
McMorris
Meek (FL)
Meeks (NY)
Melancon
Menendez
Mica
Michaud
Miller (FL)
Miller (MI)
Miller, Gary
Mollohan
Moore (KS)
Moran (KS)
Moran (VA)
Murphy
Murtha
Musgrave
Myrick
Neugebauer
Ney
Northup
Norwood
Nunes
Nussle
Ortiz
Osborne
Otter
Oxley
Pastor
Paul
Pearce
Pence
Peterson (MN)
Peterson (PA)
Petri
Pickering
Pitts
Platts
Poe
Pombo
Pomeroy
Porter
Portman
Price (GA)
Price (NC)
Pryce (OH)
Putnam
Radanovich
Rahall
Ramstad
Regula
Rehberg
Reichert
Renzi
Reyes
Reynolds
Rogers (AL)
Rogers (KY)
Rogers (MI)
Rohrabacher
Ros-Lehtinen
Ross
Rothman
Royce
Ruppersberger
Ryan (WI)
Ryun (KS)
Salazar
Saxton
Schwartz (PA)
Schwarz (MI)
Scott (GA)
Sensenbrenner
Sessions
Shadegg
Shaw
Shays
Sherwood
Shimkus
Shuster
Simmons
Simpson
Skelton
Smith (NJ)
Smith (TX)
Sodrel
Souder
Spratt
Stearns
Strickland
Sullivan
Sweeney
Tancredo
Tanner
Tauscher
Taylor (MS)
Taylor (NC)
Terry
Thomas
Thompson (CA)
Thornberry
Tiahrt
Tiberi
Turner
Upton
Walden (OR)
Walsh
Wamp
Weldon (PA)
Weller
Westmoreland
Whitfield
Wicker
Wilson (NM)
Wilson (SC)
Wolf
Wu
Wynn
Young (AK)
Young (FL)



---- NAYS 126 ---

Abercrombie
Ackerman
Allen
Baldwin
Barrow
Becerra
Berman
Bishop (NY)
Blumenauer
Brady (PA)
Brown (OH)
Brown, Corrine
Butterfield
Capps
Capuano
Cardin
Carnahan
Carson
Clay
Clyburn
Conyers
Costello
Cummings
Davis (CA)
Davis (IL)
DeFazio
DeGette
Delahunt
DeLauro
Dicks
Dingell
Doggett
Doyle
Emanuel
Engel
Eshoo
Evans
Farr
Fattah
Filner
Frank (MA)
Green, Gene
Grijalva
Hastings (FL)
Hinchey
Holt
Honda
Inslee
Jackson (IL)
Jackson-Lee (TX)
Johnson, E. B.
Jones (OH)
Kanjorski
Kaptur
Kennedy (RI)
Kildee
Kilpatrick (MI)
Kucinich
Langevin
Larson (CT)
Lee
Levin
Lewis (GA)
Lipinski
Lofgren, Zoe
Lowey
Lynch
Maloney
Markey
Marshall
Matsui
McCollum (MN)
McDermott
McGovern
McKinney
McNulty
Meehan
Millender-McDonald
Miller (NC)
Miller, George
Moore (WI)
Nadler
Napolitano
Neal (MA)
Oberstar
Obey
Olver
Owens
Pallone
Pascrell
Payne
Pelosi
Rangel
Roybal-Allard
Rush
Ryan (OH)
Sabo
Sánchez, Linda T.
Sanchez, Loretta
Sanders
Schakowsky
Schiff
Scott (VA)
Serrano
Sherman
Slaughter
Smith (WA)
Snyder
Stark
Stupak
Thompson (MS)
Tierney
Towns
Udall (CO)
Udall (NM)
Van Hollen
Velázquez
Visclosky
Wasserman Schultz
Waters
Watson
Watt
Waxman
Weiner
Wexler
Woolsey



---- NOT VOTING 7 ---

Berkley
Gillmor
Gutierrez
LaHood
Lantos
Solis
Weldon (FL)



--------------------------------------------------------------------------------

And here's how the Senate voted.

U.S. Senate Roll Call Votes 109th Congress - 1st Session
as compiled through Senate LIS by the Senate Bill Clerk under the direction of the Secretary of the Senate

Question: On Passage of the Bill (S. 256 As Amended )

Vote Counts:
YEAs 74
NAYs 25
Not Voting 1

YEAs ---74
Alexander (R-TN)
Allard (R-CO)
Allen (R-VA)
Baucus (D-MT)
Bayh (D-IN)
Bennett (R-UT)
Biden (D-DE)
Bingaman (D-NM)
Bond (R-MO)
Brownback (R-KS)
Bunning (R-KY)
Burns (R-MT)
Burr (R-NC)
Byrd (D-WV)
Carper (D-DE)
Chafee (R-RI)
Chambliss (R-GA)
Coburn (R-OK)
Cochran (R-MS)
Coleman (R-MN)
Collins (R-ME)
Conrad (D-ND)
Cornyn (R-TX)
Craig (R-ID)
Crapo (R-ID)
DeMint (R-SC)
DeWine (R-OH)
Dole (R-NC)
Domenici (R-NM)
Ensign (R-NV)
Enzi (R-WY)
Frist (R-TN)
Graham (R-SC)
Grassley (R-IA)
Gregg (R-NH)
Hagel (R-NE)
Hatch (R-UT)
Hutchison (R-TX)
Inhofe (R-OK)
Inouye (D-HI)
Isakson (R-GA)
Jeffords (I-VT)
Johnson (D-SD)
Kohl (D-WI)
Kyl (R-AZ)
Landrieu (D-LA)
Lincoln (D-AR)
Lott (R-MS)
Lugar (R-IN)
Martinez (R-FL)
McCain (R-AZ)
McConnell (R-KY)
Murkowski (R-AK)
Nelson (D-FL)
Nelson (D-NE)
Pryor (D-AR)
Reid (D-NV)
Roberts (R-KS)
Salazar (D-CO)
Santorum (R-PA)
Sessions (R-AL)
Shelby (R-AL)
Smith (R-OR)
Snowe (R-ME)
Specter (R-PA)
Stabenow (D-MI)
Stevens (R-AK)
Sununu (R-NH)
Talent (R-MO)
Thomas (R-WY)
Thune (R-SD)
Vitter (R-LA)
Voinovich (R-OH)
Warner (R-VA)

NAYs ---25
Akaka (D-HI)
Boxer (D-CA)
Cantwell (D-WA)
Corzine (D-NJ)
Dayton (D-MN)
Dodd (D-CT)
Dorgan (D-ND)
Durbin (D-IL)
Feingold (D-WI)
Feinstein (D-CA)
Harkin (D-IA)
Kennedy (D-MA)
Kerry (D-MA)
Lautenberg (D-NJ)
Leahy (D-VT)
Levin (D-MI)
Lieberman (D-CT)
Mikulski (D-MD)
Murray (D-WA)
Obama (D-IL)
Reed (D-RI)
Rockefeller (D-WV)
Sarbanes (D-MD)
Schumer (D-NY)
Wyden (D-OR)

Not Voting - 1
Clinton (D-NY)


http://clerk.house.gov/evs/2005/roll108.xml

http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=109&session=1&vote=00044

[RollWithIt]

1. I read throught the lists three times and realized the Yes votes were like a Republican Graveyard...

By 2010 nearly half of the Republican Senators will be gone... amazing if you think about how quickly they fucked everything up and disappeared.

[xchrom]

2. recommend

[liberalsince1968]

3. It's a stain on Biden that he voted for this.

[closeupready]

8. I agree. But worse, I thought he co-sponsored it?

??

[Honeycombe8]

9. I couldn't believe it when this bill passed, & that so many Dems voted for it. nt

[Liberal_Stalwart71]

4. Sadly our Vice President voted for it and as much as I love Joe Biden, I have never

forgiven him for voting for this bill.

[Better Believe It]

5. Biden is from Delaware .... The following might have something to do with his vote

Companies choose Delaware because Delaware has a long history of being the most business friendly state when it comes to being the legal home to companies. The established General Corporation law and Court of Chancery in Delaware are second to none.

....more than 50% of all publicly-traded companies in the United States, including 58% of the Fortune 500, have chosen Delaware as their legal home.

Many of these companies do not have physical offices in Delaware. The State of Delaware allows anyone to incorporate a Delaware corporation, regardless of citizenship or domicile. All that is required is a physical address in Delaware for tax documents.

http://www.brooke.clendaniel.net/

[liberalsince1968]

6. Makes it look even worse IMO.

[Liberal_Stalwart71]

7. Yes, I know about the history of Corporate Delaware, which is why Biden is often

referred to as "Mr. MBNA". Doesn't make it o.k. for him to vote for this bill, but I understand why he did so; he was following what his special interests in the state wanted. Fine.

Oddly enough, I worked for MBNA for about a year when I was in college; wanted to make some money and didn't know any better.

I do have the biggest crush on Biden, despite his voting history. I think he's brilliant and was right all along about a host of issues.

It saddens me that he is often maligned in the media for any and everything he says and does. Even the so-called "liberal" talk show hosts don't really give him a break.

Why the hatred for Biden? I'll never know. I think he was the best choice for VP. Perhaps even better for SoS, but I'm warming up to Hillary in that position.

[Honeycombe8]

10. His constituents are corporate friendly, too, I guess, since that means $ for the state.

Wouldn't expect a senator from Michigan to vote against what's good for GM or the unions, would you?

That's the reality. Politicians usu. lean to voting however their contributors and/or constituents would like. If they don't, they won't be re-elected.

I hate it, but it's a reality. We'd probably all do the same. Self preservation. (I like to think I'd rise above it and vote differently, but in reality, I think I might rationalize about why it really is good for the country in the long run, blah blah blah.)

[Better Believe It]

14. Don't be so sure about that!

"Wouldn't expect a senator from Michigan to vote against what's good for GM or the unions, would you?"

That sure didn't stop Senator Stabenow (D-MI) from voting for the bill!

[wiggs]

11. Bill is nearly proof that some people knew the economic crisis was coming. nt

[depakid]

12. Who voted for it?

Why this man crossed over and voted against his own party- and against the American people:



And he'd do it again.

[demodonkey]

13. Medical debt... Medical Debt... Medical Debt. There shouldn't be any goddam MEDICAL DEBT!!

We need SINGLE PAYER HEALTHCARE FOR ALL. Now.

We can't afford NOT to do this.