AFSCME 3357-HOF'S BLOG

Senator Evan Bayh on the Bankruptcy Bill



By the time you read this, President Bush will have signed into law the Citibank Profit Preservation Act (aka the bankruptcy bill). I wrote my Senators on this. I'm not posting Senator Lugar's response because he's a Republican, so he was expected to vote for the bill. I'm posting the letter that I received from our Democratic senator, Evan Bayh. Senator Bayh voted for the bankruptcy bill. Here is his explanation. I hope it makes more sense to you than it does to me. What I read between the lines is that he signed it because Citibank, MBNA, etc. wanted him to sign it.


Dear Mr. Hofer:

Thank you for sharing your thoughts and concerns with me regarding S.256, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.
I am grateful for your thoughts and always welcome the advice of those I am honored to represent.

The overwhelming majority of Americans work hard and spend responsibly. There are some people, however, who do not and then try to get out of their financial obligations. Those unpaid debts are passed to the rest of us through higher interest rates and increased fees. That is why I support the idea that if a person has the means to pay back their debts, they should. The Bankruptcy Abuse Prevention and Consumer Protection Act would accomplish that by requiring people who earn more than the median state income, $65,000 for a family of four in Indiana, to go through a means test to determine whether they can afford to pay back some of the debts that they owe.

During the debate, some suggested that irresponsibility is the only route to bankruptcy. That is not the case. These are very tough times for American
families many are on extended deployment or an unexpected medical
emergency away from financial disaster. Amendments were offered to address these situations, including one that I co-authored to help families who find themselves on hard times because of active duty in the military. A version of that amendment was included in the final bill.

At the end of this process, I voted in support of the Bankruptcy Abuse Prevention and Consumer Protection Act. As you may know, the bill passed the Senate on March 10, 2005, by a vote of 74 to 25. I believe, however, that the final vote on this bill is not the final word. Congress still needs to address the underlying issues that have caused Americans to turn to bankruptcy. This includes lowering the cost of health care, creating high quality jobs, protecting American companies from unfair trade, and ending the patriot penalty for active duty armed service members. Please be assured I will continue to work towards these ends.

Again, thank you for contacting me. I hope that the information I have provided is helpful. My website, http://bayh.senate.gov, can provide additional details about legislation and state projects, and you can also sign up to receive my monthly e-newsletter, The Bayh Bulletin, by clicking on the link at the top of my homepage. I value your input and hope you will continue to keep me informed of the issues important to you.


Best wishes,





Evan Bayh
United States Senator