Bill Statistics

The Middle Class Position

The middle class opposes.

How They Voted

26% with middle class
73% against middle class
1% did not vote
Pie Chart

Grades

Grade F
House

The House receives a grade of F for its support of the middle class on this piece of legislation.

113 Representatives voted for the middle-class position; 315 voted against.

See how each member voted on this bill:

House

H.R. 975

Bankruptcy Abuse Prevention And Consumer Protection Act Of 2003

in
Introduced:
02.27.2003 [House]
House: Yea-315, Nay-113
Never came to a vote in the Senate.
The Legislation: 

The Bankruptcy Abuse and Prevention and Consumer Protection Act of 2003 amends federal bankruptcy law to: 1) replace the presumption in favor of granting the relief sought by debtors with a presumption of fraud on the part of many debtors; 2) restrict the grounds upon which individuals may file, thereby excluding financially troubled families from bankruptcy protection; 3) require an individual debtor, regardless of the reason for filing, to be counseled by an approved nonprofit budget and credit counseling service; and 4) permit credit card companies to modify or terminate debtor agreements approved by the court as part of the debtor’s bankruptcy plan.

The Middle-Class Position: 

The Middle Class Opposes: In 2003, 1.3 million middle-class American families buckled under the crushing weight of increased healthcare, childcare, and other fixed costs, and filed for bankruptcy. Today, bankruptcy filings are more prevalent than filings for divorce, and more numerous than deaths from heart attacks. This bill creates a windfall for unregulated credit counseling agencies, many of which are under civil and criminal investigation. It also empowers the credit card industry to saddle middle-class families with unreasonable interest rates and payment agreements by expanding their ability to re-evaluate and terminate debtor agreements without the consent of a court. And, it would limit Americans’ ability to receive federal bankruptcy protection when they lose their jobs, incur uninsured medical bills or when a wage-earning spouse leaves.

From the Experts: 

“Once you’ve got accumulated debt, the debt takes on a life of its own. It demands to be fed, and it takes that first bite out of the paycheck. It means the opportunity to accumulate a little, to get a little ahead, maybe to put together a down payment is just never there. I am staggered that this issue is not a part of our national debate right now.” – Dr. Elizabeth Warren, author of The Two-Income Trap: Why Middle-Class Mothers and Fathers are Going Broke (March 16,2004)

“Now is a particularly bad time to pass one-sided bankruptcy legislation. Many Americans are coping with the after-effects of a tough economic recession and are financially vulnerable. HR 975 would harm moderate-income families that have been hit by a financial emergency and benefit the credit card industry, whose aggressive lending practices contribute to bankruptcy.” – The Consumer Federation of America,C onsumers Union,and the U.S. Public Interest Research Group (January 28,2004)

Beyond this Bill: 

As the cost of healthcare, childcare, housing, education, and various other necessary expenses continues to rise, legislators sympathetic to the plight of middle-class families should oppose this legislation in the Senate, as well as the Responsible Lending Act (HR 833), currently awaiting a vote in the House and Senate, which would empower the credit industry to impose unduly high interest rates and unreasonable payment schedules on already burdened debtors.

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