FRIST COMMENTS ON BANKRUPTCY DEBATE

FRIST COMMENTS ON BANKRUPTCY DEBATE Floor Statement -- Remarks As Prepared For Delivery

Senator Bill Frist, M.D. March 8th, 2005 - Mr. President, we have made tremendous progress on the bankruptcy bill. Republicans and Democrats have stood together to support a bankruptcy reform package that the House will pass and the President will sign into law. The Senate has resisted attempts to renegotiate hard-fought compromises and legislate on unrelated issues. I commend my colleagues for staying focused.

There have been many attempts to sidetrack the Senate on this bill. Let me begin by reiterating why we need bankruptcy reform and what this bill really does.

The bill before us establishes a means test based on a simple, fair principle: those who have the means should repay their debts. Personal bankruptcies are skyrocketing and wealthy debtors are walking away from debts they have the ability to repay. Opportunistic debtors who have the means to repay use the law to evade personal responsibility.

This abuse doesn’t just hurt the creditor they owe, it hurts all of us who pay higher fees and prices as a result.

Every bill you and I pay includes a hidden “bankruptcy tax” of $400 a year per household. That tax is figured into in every phone bill, electrical bill, mortgage payment, furniture purchase, or car loan we pay.

Interest rates are higher, down payment requirements are larger, grace periods are shorter, and late payment penalties are astronomical – all because some people are shirking their debt obligations.

This legislation is targeted to ensure that wealthy debtors who can pay their debts do so.

It specifically exempts anyone who earns less than the median income in their state. And it also allows every consumer to show “special circumstances” if they cannot handle a repayment plan.

We know that one reason people file for bankruptcy is because of an unexpected medical emergency. Consequently, this legislation allows every filer to deduct 100% of their medical costs.

We also know that education is a big outlay for many families. Under bankruptcy reform, parents can deduct private school tuition to protect their children’s educational opportunities.

The bankruptcy bill strengthens protections for child support and alimony payments.

It protects patient privacy and care during bankruptcy proceedings that involve health care facilities.

It protects consumers from deceptive credit practices that can lead to financial distress.

And it protects the system that allows America to be one of the most generous countries when it comes to bankruptcy.

There remain, however, some misconceptions about this bill that should be dispelled. The first regards our protections for active duty military personnel and veterans.

Some opponents of the bill charge that we do not adequately address the needs of our men and women in combat who may suffer financially.

Mr. President, it should go without saying that the United States Senate and the American people deeply honor our men and women in uniform. Everyday, these young soldiers sacrifice to protect us and defend our freedom. We are indebted to them for the dangers they face on the field and the families they leave in order to fight.

That is why last Tuesday, we passed the Sessions amendment to help clarify protections for our military and others under a safe harbor in the bill. This provision, which passed with 63 votes, makes explicitly clear that active duty military and low income veterans are protected by the safe harbor. In addition, it also protects debtors with serious medical conditions.

On this issue, the other side has created a red herring designed to score political points and shift the debate away from bankruptcy abuse.

Another red herring is the charge that the bankruptcy bill sacrifices consumers to benefit credit card companies. The truth is that the bill before us includes several carefully negotiated amendments that expressly protect credit card holders.

Increased disclosure requirements for credit card statements and mandates that credit card companies assist borrowers in determining how long it will take to pay off their credit card balances;

And additional disclosures regarding credit card “introductory rates” and new disclosures related to credit card late fees.

These protections are the result of lengthy and careful negotiation. Additional measures should be properly addressed in the Banking Committee. As Senator Sessions has pointed out, we are debating a bankruptcy bill designed to create a fair and common sense process in the federal courts.

Moreover, the bill before us has passed this body three times with overwhelming bipartisan support. In the 105th Congress, it passed by a vote of 97 to 1. Again in the 106th 83 to 14. And again in the 107th by a vote of 82 to 16.

It is time to take action on a much needed reform that is supported by both sides of the aisle.

I am confident that by working together we can get this done in this Congress, this week, and see bankruptcy reform signed into law.

It is long past time to stop abuses of the bankruptcy code. The legislation before us is thoughtful and well considered. It offers the opportunity to give the system, and the people it is designed to help, a fresh start. In short, it promises to deliver meaningful solutions that keep America moving forward.

March 2005 Speeches « February April » « 2004 2006 » Radio Clip | Television Clip 8th - current Speech 7th - Frist Reflects on 40th Anniversary of Bloody Sunday [ ] 3rd - Frist Statement on Social Security 2nd - Jackie Robinson Congressional Gold Medal Award Ceremony 2nd - Frist Introduces Medicine, Health, and Safe Water: Currency for Peace Act of 2005 1st - Frist Statement on Bankruptcy Bill

I am not sure you are reading my posts. I do not assume either the CC lenders or borrowers are stupid, and I think you missed the point that CC lender and borrowers entered into contracts that incorporated existing bankurptcy code and state exemption law and now that law is being changed after the fact in favor of one party over the other. I can't explain it any clearer than in my last post to you and if you don't get it, well, you just don't get it. What can I do.

As to planning, planning is great, and if your planning is bullet proof then you are in great shape. Maybe because of the financial train wrecks I see day in day out, of all shapes and sizes, I have become sensitive to the fact that practically everybody is vulnerable to financial catastrophe at any moment. $100,000 sitting in the bank? $200,000? Doesn't matter. Events can sweep that away in an instant. I don't say these things to put people on eggshells or render them less confident. I say them because they are real and should be considered by all when making public policy such as rewriting bk laws. But like I said last post, the debate is over and this bill is getting passed.

There is good news though, I figured out today how to siphon off a significant portion of the 5 year income stream that MBNA et al thinks it will be getting from all these coerced Chapter 13's under the new bk law. So the real moral of the story is while MBNA et al and its senator whores do all the dirty work, we slip in at the end and take the value. And that is sweet.

My hedge is that I have positioned myself to profit from the financial catastophe's of others. And while this bill is bad for country, its good for me, and . not

I guess I did miss something in this legislation. Where does it say that previously signed agreements are void? Laws change all the time, and that doesn't bother me at all. But if we are arbitrarily nullifying agreements that people have willingly signed, then we are in so much trouble that anything else is trivia.

If you have really figured out how to rip off people under the new laws, good for you. And if you've figured out how to sleep while doing it, even better.
Our laws will never be perfect, and we will always have scam artists. The borrowers have been scamming for a long time, so maybe it is time to give the lenders a shot at it. After all, you are saying that scamming is the thing to do if you don't agree with the law.

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