Obama Highlights Bankruptcy Reform as Part of Economic Agenda
Democratic presidential candidate Barack Obama spoke out against provisions in the 2005 BAPCPA that unfairly weigh on certain segments of the population, and proposed changes to bankruptcy law that would seek to level the playing field for individuals in these classes.
Specifically, he proposed providing special provisions for military families and seniors facing bankruptcy. Military families would gain the advantage of a "fast-track bankruptcy practice" under these proposals, with easier paperwork and documentation and a greater bankruptcy exemption for their homes. Similarly, seniors would receive a larger homestead exemption.
In a reversal of former President Ronald Reagan's famous phrase, Obama called the current economic downturn in the country a result of the fact that "pain trickles up" in the country, meaning that laws on mortgage lending, payday lending and "questionable banking practices" that target lower-income families and individuals have led to a widespread crisis.
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