Bankruptcy

Is Bankruptcy Reform On Its Way Out?

Maybe, if we don’t act now.

News isn’t encouraging this morning. After Senator Obama sold us out changed his mind and stated his belief that the mortgage reform angle was “probably something we shouldn’t try to do in this piece of legislation” predictably the rest of the party followed suit and declared the issue a “nonstarter.” Gee, thanks, Barack.

Why is it a nonstarter? What on earth is the justification for treating the greed-soaked monsters who created this mortgage nightmare and set us on the path to national fiscal crisis better than we treat the victims of the crisis who are most in danger of losing their homes?

Tell you what: I’ll even agree to put aside the “victim” lingo for a bit. Let’s assume (solely for the sake of argument) that the homeowners are just as much “bad actors” as the corporations getting bailed out for their bad choices. Apples and apples, then - and why are we helping one and not helping the other, especially when it’s SO easy to do?

This isn’t a case of “either/or” — it’s perfectly plausible to enable mortgage modification AND bail out the financial giants. One does not preclude the other. So what could possibly be the justification for this blatant nose-thumbing directed towards the working class homeowners who are struggling to stay in those homes?

Answer: nothing but politics, I fear. Big business = good. Middle class = bad. Very, very bad.

© 2008 SC Bankruptcy & Consumer Law Blog.