Category Archives: Jobs

The Rise and Fall of the Minimum Wage

  The Rise and Fall of the Minimum Wage From the Center for Economic and Policy Research:http://www.cepr.net/pressreleases/2006_06_19_graph.htm The Rise and Fall of the Minimum Wage (1946-2006): The Federal Minimum Wage Is at Its Lowest Point in 50 YearsThe federal minimum … Continue reading

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Loebsack Responds to Budget

  Loebsack Responds to Budget Vote By Sam Garchik Ellen Ballas sent this on to me from the Loebsack campaign: Loebsack Responds to Leach's Vote on Budget Resolution Dave Loebsack issued a statement Thursday responding to Iowa Congressman Jim Leach's … Continue reading

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Effect of Corporate Globalization on State & Local Governance

  Effect of Corporate Globalization on State and Local Governance From Public Citizen at http://www.citizen.org Public Citizen's Global Trade Watch (GTW) promotes democracy by challenging corporate globalization, arguing that the current globalization model is neither a random inevitability nor “free … Continue reading

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Iowa Blog Roundup

Iowa Blog Roundup By Sam Garchik A sad week in Iowa for progressives. The Iowa Blogosphere has done a first rate job of covering the Maytag closing and loss of 4,000 jobs.  For those looking for national perspective, check out Iowa Progress' … Continue reading

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Quick! Fly now while it’s still safe!

Quick! Fly now while it’s still safe!   By Robin Roseman <?xml:namespace prefix = o ns = “urn:schemas-microsoft-com:office:office” />  The FAA has walked out of contract negotiations with the National Air Traffic Controllers Association (NATCA).  The problem has been turned … Continue reading

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Wal-Mart & Crime: Is Wal-Mart Safe?

Wal-Mart & Crime: Is Wal-Mart Safe? By Paul Blank – http://www.wakeupwalmart.comThe Wake-Up Wal-Mart campaign recently released the first national study detailing the problem of crime at Wal-Mart store locations called “Wal-Mart & Crime: Is Wal-Mart Safe?” We requested the official … Continue reading

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Working Toward Economic Justice in the QC

      Working Toward Economic Justice in the QC: By Caroline Vernon “Tax-Day” Leadership planning session and Wake-Up Walmart Demonstration We couldn't have asked for a more beautiful day to “get active“. Over a dozen community leaders and concerned citizens started … Continue reading

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Values Fund May Not Be So Valuable to Taxpayers

  Values Fund May Not Be So Valuable to Taxpayers nicholasjohnson.org   by Nicholas Johnson (used with permission)   What's the value of the Iowa Values Fund?  Its promoters say it's a “jobs program.” Its detractors say it smells more … Continue reading

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Tax-Day Wal-Mart Demonstration in the Quad Cities

  Tax Day Walmart Demonstration by Caroline VernonTax- Day Walmart Demonstration – in the Quad CitiesMaking a push for the Fair Share For Health Care Bill Saturday, April 15th12:30pm – 1:30pmNortheast corner of 53rd & Elmore(parking at Staples)DavenportFriends,Iowa needs our … Continue reading

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New Bankruptcy Law Fails; Vast Majority Can’t Repay Debts

 New Bankruptcy Law Fails; Vast Majority Can't Repay Debts


Hastings Group

At the time that Congress passed the infamous bankruptcy law, Chuck Grassley said the bankruptcy changes would clean up “a convenient financial planning tool where deadbeats can get out of paying their debt scott-free.”

NACBA Analysis of More than 60,000 Consumers Processed Under New Law Asks:  “Where Are the Deadbeats” Congress Expected to Find and Stop With Onerous Rule Changes?

WASHINGTON, D.C. – The first analysis of tens of thousands of consumers seeking protection since a new federal bankruptcy law went into effect last October concludes that the changes put in place by Congress are not working as intended.  The report by the National Association of Consumer Bankruptcy Attorneys (NACBA) finds that of the 61,355 consumers seen so far by credit counseling firms – the required first stop under the new bankruptcy law – nearly all (97 percent) are unable to repay any debts and that four out of five would-be filers (79 percent) were forced into dire financial straits by circumstances beyond their control, such as the loss of a job, catastrophic medical expenses or the death of a spouse.

Entitled “Bankruptcy Reform's Impact: Where Are All the Deadbeats?,” the NACBA analysis is based on data provided by a cross-section of six large and small credit counseling firms that have been authorized by the U.S. Justice Department's Executive Office for U.S. Trustees to provide bankruptcy screening.  The credit counseling firms responding to the NACBA survey were:  Money Management International (Houston, TX), GreenPath Inc. (Farmington Hills, MI), Springboard Nonprofit Consumer Credit Management (Riverside, CA), Hummingbird (Raleigh, NC), Institute for Financial Literacy (Portland, ME) and ByDesign Financial Solutions (Los Angeles, CA).  

Brad Botes, executive director, National Association of Consumer Bankruptcy Attorneys, said:  “Contrary to the claims of proponents of bankruptcy law changes that they would zero in on the alleged legions of 'deadbeats' who supposedly were crippling the U.S. economy with 'billions of dollars in losses associated with profligate and abusive bankruptcy filings,' the federal bankruptcy law changes that went into effect on October 17, 2005 are doing no measurable good whatsoever.  Instead, they have put new hurdles in the path of people who are already flat on their back due to financial crises over which they have no control, such as the loss of a job, catastrophic health care bills, and so on.”

Botes noted that bankruptcy filings are down because many Americans may mistakenly believe that the courthouse doors are barred to them.   The NACBA executive director said, “Credit counseling organizations now know what bankruptcy lawyers and other experts said all along: Congress got it dead wrong when it passed the bankruptcy law.  Even though the process is now more cumbersome, time consuming and expensive than before, consumers who need help should still seek out a bankruptcy attorney to explore their options and figure out how to navigate this trickier and more confusing process.”

John Rao, attorney, National Consumer Law Center, said: “Bankruptcy judges, attorneys, academic researchers and others warned Congress that the bankruptcy filing rate was a 'symptom' and not the 'disease' itself.  So long as people lose their jobs, have uninsured medical problems, and face other catastrophic circumstances, they will need the protection of the bankruptcy system. This data is evidence of that. All Congress has succeeded in doing with the new law is to delay and drive up the cost of bankruptcy protection for those who desperately need it.”
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