Obama Adds Bankruptcy Reform to Agenda
Jul 9th, 2008 | By Rob | Category: Obama, bankruptcy
Barack Obama called for revisions to the Republican-led bankruptcy reforms passed in 2005. The proposal focused on assisting individuals declaring bankruptcy due to debts related to health care/medical procedures, military personnel and their families facing debt due to extended deployment, frequent moves, or predatory lending, and protecting the elderly against losing their home in bankruptcy. The Wall Street Journal article covers the reform proposal in depth.
Bankruptcy reform is not surprising given Obama’s previously announced proposals for credit card reform. While estimates that health care costs drive 50% of bankruptcies means that Obama’s announcement might affect a large number of people, it noticeably does not make it easier for Americans who are suffering under debt that many in Congress believe is the result of deceptive practices or predatory lending by the credit card industry. The Higher Ed Watch Blog also points out another potential reform ignored by Obama’s proposal: student loan debt issued by private companies.
