What is it that Republicans (and some Dems) don't want you to know about the 2005 Bankruptcy Bill?
Who inserted the language about how the rules that apply to PEOPLE in bankruptcy does not apply to INSURANCE type corporations like AIG?
Did you know why Congress cannot let AIG to fail even though that is the free market system? If you don't - you watch too much TV.
In 2005 Congress passed a law bought and paid for by their lobbyists that will not allow you to dispense of your debts because of calamities (whatever) to your family...
Guess you did not know that at the eleventh hour they inserted language that would allow "insurance" companies like AIG to not do what all companies that are in bankruptcy to do. It says that they must pay off the "investors" before their creditors (etc) that must be paid off first. AIG did not lose money on insurance as we know it. They sold insurance on properties that were not even owned by them.
The GOP was 100% behind this scam. 100%.
There were some rat-bastahds like Harry Reid behind it, too!
What do you think? Please look it up before you answer if you are not aware of this bill!
Public Law 109-8 (Bankruptcy Law 2005)
Section 901 New Def of swap agreements and redefined Financial Institutions
Sec 907 Bankruptcy law amendments...
‘‘(d) Any provisions of this title relating to securities contracts,
commodity contracts, forward contracts, repurchase agreements,
swap agreements, or master netting agreements shall apply in
a case under chapter 15, so that enforcement of contractual provisions
of such contracts and agreements in accordance with their
terms will not be STAYED or otherwise limited by operation of any
provision of this title or by order of a court in any case under
this title, and to limit avoidance powers to the same extent as
in a proceeding under chapter 7 or 11 of this title (such enforcement
not to be limited based on the presence or absence of assets of
the debtor in the United States).’’
Please feel free to read the law itself.
Here is a short -one paragraph explanation for those who do not like reading US laws in PDF format. I guaranttee it is true since I just read the Bill...
- Anonymous1 decade agoFavorite Answer
I believe it. Do I have to look it up too? Does anyone, really? I'd be mighty surprised if the GOP didn't write the course of our current debacle into their scripture in some form, however Apocryphal.
- snowball45830Lv 51 decade ago
Bankruptcy Abuse Prevention And Consumer Protection Act Of 2005
in Debt & Bankruptcy Personal bankruptcy
Sen. Chuck Grassley [R-IA]
Signed into Law: 04.20.2005
Senate: Yea-74, Nay-25
House: Yea-302, Nay-126
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 introduces a number of changes to federal bankruptcy law that make it harder for debtors to get a fresh start. The bill: 1) replaces the presumption in favor of granting the relief sought by debtors with a presumption of fraud on the part of many debtors; 2) makes debtors pay more to creditors both during and after bankruptcy; 3) restricts the grounds upon which individuals may file, thereby excluding financially troubled families from bankruptcy protection; 4) increases fees and paperwork associated with bankruptcy, raising more hurdles to cash-strapped families ability to file successfully; 5) requires an individual debtor, regardless of the reason for filing, to be counseled by an approved nonprofit budget and credit counseling service; and 6) permits credit card companies to modify or terminate debtor agreements approved by the court as part of the debtor’s bankruptcy plan. At the same time, the bill does nothing to reign in the asset-protection trusts multi-millionaires use to shield their wealth while filing for bankruptcy.
You are either lieing or you need to provide a source, everything I read has no mention of companies like AIG (welcome to the big leagues !!)
- Anonymous1 decade ago
Let's elect conservatives next time.