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To: Knighty Tin who wrote (24716)	3/2/2005 12:33:37 PM
From: mishedlo	Read Replies (6) \| Respond to of 116555

the bankruptcy bill that Republicans say is designed to make it harder for the rich to abuse bankruptcy actually makes it harder for everyone to declare bankruptcy. Except, of course, for a giant loophole for the rich. Color me shocked: nytimes.com -------- The bankruptcy legislation being debated by the Senate is intended to make it harder for people to walk away from their credit card and other debts. But legal specialists say the proposed law leaves open an increasingly popular loophole that lets wealthy people protect substantial assets from creditors even after filing for bankruptcy. The loophole involves the use of so-called asset protection trusts. For years, wealthy people looking to keep their money out of the reach of domestic creditors have set up these trusts offshore. But since 1997, lawmakers in five states - Alaska, Delaware, Nevada, Rhode Island and Utah - have passed legislation exempting assets held domestically in such trusts from the federal bankruptcy code. People who want to establish trusts do not have to reside the five states; they need only set their trust up through an institution in one of them. "If the bankruptcy legislation currently being rushed through the Senate gets enacted, debtors won't need to buy houses in Florida or Texas to keep their millions," said Elena Marty-Nelson, a law professor at Nova Southeastern University in Fort Lauderdale, Fla., referring to generous homestead exemptions in those states. "The millionaire's loophole that is the result of these trusts needs to be closed."

To: Knighty Tin who wrote (24716)	3/2/2005 12:51:36 PM
From: mishedlo	Read Replies (1) \| Respond to of 116555

Treasury´s Snow: Social Security blitz just starting Wednesday, March 2, 2005 5:34:06 PM afxpress.com Treasury's Snow: Social Security blitz just starting WASHINGTON (AFX) -- Treasury Secretary John Snow told reporters Wednesday that administration officials from President Bush on down would hit a total of 60 cities over the next 60 days to build support for the White House effort to add private investment accounts to Social Security. Snow said the administration remained committed to achieving "legislative success" on the issue "later this year." He dismissed talk by some congressional Republicans that action could slip until 2006

To: Knighty Tin who wrote (24716)	3/2/2005 1:03:05 PM
From: mishedlo	Read Replies (3) \| Respond to of 116555

Thetis on the FOOL on the bankruptcy law Not only does the bankruptcy reform favor the rich, it affirmatively hurts the poor who will, as a practical matter, be unable to even file bankruptcy. Among the provisions are new requirements and regulations of lawyers. The Act, which is dubbed in legal circles the "Do you really want to practice Bankruptcy Law Act" imposes a miriade of restrictions that will send legal fees for bankruptcy skyrocking - assuming anyone would take the case at any price. It would require Attorneys to qualify as "debt relief agencies" and comply with federally mandated regulations associated with these services and - I think - spend at least 60 days prior to filing attempting to negotiate repayment plans with creditors- fat chance. How much will that cost and what will the creditors do in the meantime in terms of wage garnishments and other collections. It would impose personal liability on attorneys if there was any problem with the bankruptcy leading to its dismissal. This means the Attorney would be personally responsible for valuation and existence of assets and verification of expenses. Who in their right mind would take on this liability at all without spending hours verifying reciepts, obtaining appraisals of property etc. It would also require the attorney to personally certify that the client will be able to pay under the terms of any reaffirmation agreement. Currently, he merely certifies that it will not work a "hardship" on the debtor. This requires more auditing of the client's finances. I have been doing bankruptcies for nearly 20 years. These provisions would basically make the attorney an collection agent for the creditors. I would estimate about 20% of my clients could even provide me the information necessary to discharge the above duties in any reasonable fashion. Even so, I estimate my time expenses (not including any fees factored in for assuming personal liability) as at least @$4k as opposed to the $500-1000 I charge now. If you are broke, this is an enormous sum to come up with. If my clients are typical they would never be able to get their act together enough to even file -which is IMO the whole purpose of this law to begin with. Before you post the inevitable "personal responsibility" responses, please spare me. Creditors for the past 10-15 years have been recklessly cramming unsecured credit down the throats of people. For example, who in their right mind would lend $30K unsecured to an 80 year old woman on 600/mo. social security and expect to be repaid? Cry me a river. If "responsibility" is an issue, how about the creditors adopt lending standards based on income/expenses like they did 20 years ago. Include a provision in the Act that makes a debt uncollectable if made when the creditor knew or should have known that the debtor was unable to repay it and outlaw preditory lending practices. Then I might listen. This law is a travesty. As written, the poor will become enslaved and the rich will skate as always. Regards. Thetis.