Chuck Schumer: “This amendment closes the so-called millionaires loophole. If any of you happened to read yesterday's New York Times…”

“This amendment closes the so-called millionaires loophole. If any of you happened to read yesterday's New York Times, there is in existing law a hidden loophole which basically says if you are a millionaire and want to file a certain trust in one of five States, you can hide all your money even though you declare bankruptcy. So the irony is, in this bill, while we are talking about people who make $35,000 or $40,000 or $45,000 and we want to make sure they do not abuse bankruptcy, the law allows this abuse of bankruptcy. The Bankruptcy Abuse Prevention and Consumer Protection Act, which I am introducing along with my colleagues Senators Durbin, Feinstein, and Bingaman, and I believe Senator Clinton as well, will close this loophole. You do not have to be a resident of these five States, but you can be a millionaire or billionaire and stash away assets: mansions, racing cars, yachts, investments, in a special trust, and you can hold onto that windfall after bankruptcy. That is not fair.”