Herb Kohl: “the bankruptcy conference will meet on Tuesday to discuss and attempt to resolve the remaining differences between the…”

“the bankruptcy conference will meet on Tuesday to discuss and attempt to resolve the remaining differences between the House and Senate versions of the bill. One of those issues is the Senate provision that addresses the single most offensive abuse in the bankruptcy system, the homestead exemption. As we all know, the homestead exemption allows debtors in five privileged States to declare bankruptcy but still shield unlimited millions of dollars in their homes from their creditors. With every year that passes, we learn of new cases where scoundrels have declared bankruptcy in States like Florida and Texas but have continued to live like kings in multi-million dollar mansions. Just 2 weeks ago, the New York Times ran a story on former Enron executives like Ken Lay and Andrew Fastow who are doing some bankruptcy planning of their own. They are selling numerous properties around the country worth millions of dollars, but retaining--or in some cases even building--luxury homes in Texas or Florida. Using the homestead exemption, Lay will be able to retain his $7.1 million condominium in the finest apartment building in Houston and Fastow will keep his multi-million dollar mansion currently under construction. They will be able to enjoy their mansions, even if they declare bankruptcy, as their former employees struggle to find a new paycheck or to cover the rent.”