There are very few people who actually like the new bankruptcy bill currently in the Senate that is almost certain to become law.

Most Democrats don’t like it, and many Republicans don’t like it either — Glenn Reynolds of Instapundit fame, or just check the comments at redstate.org.

Credit card companies do love it, though, and so does Emily Cook, (“Careful with that card! You might not get a fresh start,” March 11).

Among the industry-fed lines Cook fell for hook, line and sinker:

• Cook implies that people are taking advantage of bankruptcy law to spend irresponsibly and then avoid paying their debts. Actually, 50 percent of bankruptcies are because of medical emergencies. A full 90 percent of bankruptcies are because of medical emergencies, divorce or job losses.

• Cook also mentions that bankruptcies have increased dramatically since 1978. That is true. What also has changed dramatically since 1978 is the cost of health care. Recent studies have shown that Americans spend less on non-essential items and more on health care, housing and transportation.

• It is true that some people abuse the system, as Cook asserts. Most of these are the very rich (think Enron executives) and can shield their multimillion dollar mansions from bankruptcy proceedings.

This bill does not close that loophole. Sen. Chuck Grassley, R-Iowa, claimed he would vote for an amendment to close that loophole. The amendment was proposed, and Grassley voted to oppose it. Sen. Tom Harkin, D-Iowa, on the other hand, has been a defender of the consumer, to his credit.

• If you are a soldier and you get into financial trouble, this bill won’t protect you. You can give your life for this country, but the government won’t give you a break. (Consider that many reservists’ families see their income drop precipitously when the reservist is called into action.)

• Finally, Cook asserts that credit card rates will go down thanks to this bill. Right. Credit card companies spent all this money and effort to create and ensure passage of this bill, just to pass along the savings to the consumer.

This is a bad bill, and the only reason it’s going forward is because of the clout of the credit card companies in Washington, and because, as citizens, we are choosing to ignore this.

Alejandro Andreotti

Adjunct Assistant Professor

Curriculum and Instruction