CNN Lou Dobbs Tonight - Transcript
CNN Lou Dobbs Tonight - Transcript
DOBBS: We've just received word that the U.S. Senate has passed-has just passed legislation on bankruptcy, making it far more different for families to file for bankruptcy. The measure passed in the Senate 74-25. It's the most sweeping overhaul of bankruptcy laws in a quarter century. The House will vote on the legislation next month. I talked earlier with Senator Kennedy about the fact that half of all personal bankruptcies occur because of medical and health issues, and the burden that is imposed particularly on single mothers.
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SEN. EDWARD KENNEDY (D), M.A.: Well, just four days ago, I was at a hearing in Brighton, Massachusetts. And there was a wonderful person that stood up and said, Senator Kennedy, when is the United States Senate going to start paying attention to the kind of problems that my family are facing? You've taken care of the big corporations with the class-action bills. You're taking care of the credit card companies with the bankruptcy bills. It looks like you're taking care of Wall Street on Social Security. When will people take care of the things that I-that really affect my family?
One of the amendments I offered this afternoon was to say we have 1 million single women that go into bankruptcy every year, and 20 percent of them go in because of deadbeat dads. Their husbands refuse to pay alimony or child support. These are hard-working women trying to provide for their children, for their families. And now under this bankruptcy bill, they're going to be swallowed up by the credit card companies and really be indebted to them for the next five years. This isn't the right way to do it. It is unfair to single moms. They didn't fail to pay their bills. It was just their deadbeat husbands.
DOBBS: And what you propose in the way of support for their single mothers would be consistent with family values. Also most people in this country have been, because of various lobbying efforts and advertising efforts, they've painted the picture of those who enter bankruptcy in this country as spend thrifts, but the fact is quite different, isn't it?
KENNEDY: It is. The basic bankruptcy judges and others say maybe it's 5 percent or 7 percent. We're all for requiring them to meet their responsibilities. But even the proponents say it's somewhat less than 10 percent, but nonetheless they're going to catch the single moms. And the reason they're going to catch the single moms is through no fault of their own, it's because of the deadbeat dads.
They're not paying alimony or child support, and they're going to-the second very important amendment was because we have seen so much outsourcing of American jobs recently, and the loss of manufacturing jobs recently, we've seen many of these individuals who have lost their health insurance, and they also are being caught up. They're trying to provide for their family. They're trying to pay off their bills with part-time jobs. And they're just getting swallowed up by credit card debt. And they're going to be indebted to the credit cards for the next five years. Bankruptcy was always about make people pay whatever they can at the time of their bankruptcy and give them a second chance. That's the way it's been historically.
But that isn't what this bill is about. This bill, is a bill for the credit card companies, by the credit card companies, written by the credit card companies. And it will mean hard-working Americans are going to be tied to paying out to the credit card companies for years into the future.
DOBBS: Senator Kennedy, we thank you for being here. Appreciate it.
KENNEDY: Thank you very much.
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