Pete Stark: “Chairman, I rise in strong opposition to H.R. 975. This bankruptcy bill is touted as reform. But, it is actually a wolf…”

“Chairman, I rise in strong opposition to H.R. 975. This bankruptcy bill is touted as reform. But, it is actually a wolf in sheep's clothing intended to allow credit card companies and other lenders to gouge consumers when they are most vulnerable. Republicans are giving this gift to the big credit card companies in the midst of this difficult recession, making it harder for working families to seek shelter from the common financial emergency of a lost job or lack of health coverage. In fact, 90% of all bankruptcies are filed for these very reasons. It's hard to see the abuse in these real instances of need, especially when many Americans live paycheck to paycheck. Yet, this Republican legislation makes it more difficult for those Americans forced into bankruptcy--a disproportionate number whom are women and minorities--to seek this protection. In fact, the bill requires the debtor in some cases to have to take on big corporate lenders in court to prove they are worthy of bankruptcy, forcing them to bear legal expenses they can't afford. In addition, this bill also allows creditors to threaten debtors with costly litigation that will in turn force many families to needlessly give up their legal rights.”