Letter from Senator Stabenow

I enjoyed the opportunity to see so many First Congressional District
Democrats this past Saturday in Menominee at your annual UP Dinner and
thank everyone for their warm reception.

After such a wonderful weekend in the UP, I was dismayed to see the
recent emails distributed to First Congressional District members
personally attacking me because of my vote on bankruptcy reform. I want
to share some information with you regarding this issue.

My position on bankruptcy reform has been consistent. I voted for
reform
before my election to the Senate while serving in the US House and
again
in 2001 while serving in the Senate. My position has not changed.

What has changed is that this issue is now viewed with greater
intensity
and distrust as part of the Bush agenda rather than as a bipartisan
issue that has been worked on for many years. Seventeen Senate
Democrats
and 73 House Democrats joined me in supporting this bill. However, this
distrust has led to what I believe are a number of misconceptions about
the bill. Here are the facts:

This bill does make it more difficult for higher income families to
discharge their debt if it is proven that they have the ability to pay
at least a portion of the debt. However, lower income families are not
affected by this bill. If a family makes less than the state’s median
income, which is $68,602 for a family of 4, then they would not be
affected and could continue to enter Chapter 7 bankruptcy as they do
today. Only 7-10% of those who now file for Chapter 7 bankruptcy would
be affected by this bill.

A person making above the median income would continue to be eligible
for Chapter 7 bankruptcy if they faced special circumstances which
prevented them from paying their creditors. These circumstances include
things like a serious medical condition or a call to active duty in the
Armed Forces. Military veterans who are disabled in the line of duty
will continue to be eligible for Chapter 7.

The bill continues to safeguard our most valuable assets from creditors
during bankruptcy: our homes, automobiles and household goods and
retirement savings. The bill also takes into account a person’s
expenses
such as food, clothing, insurance, support of elderly parents, school
tuition, and heating bills. In addition, the bill strengthens the law
for families receiving child support payments. After administrative
costs, child support and alimony are now given first priority.

We may respectfully disagree about this bill, but my vote was based on
the sincere belief that abuses of our bankruptcy laws hurt all
consumers
and that this bill ended some of those abuses while protecting lower
and
middle income families.

The interests of consumers are my top priority. I have authored and
worked to pass laws to stop identity theft, protect consumer privacy,
protect corporate whistle blowers and stop unscrupulous lenders from
swindling consumers through predatory lending practices. The recent
change in law that allows consumers to receive a free copy of their
credit report was due in part to my leadership.


Thanks for being involved. As always, I welcome your input.

Sincerely,

Debbie Stabenow

Like my mom always said, just because others do it, doesn't mean that YOU have to do it, too! Wrong is wrong, Deb... sorry.

Sorry Debbie, you glossed over the new benefits for the banks and irresponsible credit lenders who clog our mailboxes with junk pre-approvals. Every major consumer group in the country was against the bill. By my casual count, 9 out of 10 editorials opposed the bill. You may get our votes, but for many of us, our hearts are no longer in it for your campaign. You may wish to reconsider some of your DLC tendencies because this issue is going to continue to haunt you.

At least it appears the anger and disillusionment many of us are expressing is beginning to bother you. I was beginning to think you were ignoring us.

How are families below the cap going to afford the counseling they have to provide proof of before even a determination can be made as to rather they qualify to file 7? Also, if expenses subtracted from earnings leave you with $100. or more a month you can't file. Ever try to live on $100. a month on expenses? And it doesn't list what are considered expenses, does it include gas for your car, or pet supplies or yard work necessities, all these little things that add up, but are needed? There is just so many little things in the bill I don't think she thinks are important to the average person. And above all the Unified Credit section is absolutely scary.

on edit: forgot spell check

I haven't spoken to her personally on it yet. This letter is to the 1st District and I'm the 4th. I'll be seeing her soon though and would pass on any direct questions and report back with any answers I got.



Julie