All of us have heard about the passing of Senator Ted Kennedy; but what many of us don't realize is that this senator was a champion for bankruptcy rights for the little guy and supported provisions in the bankruptcy code that would prevent abuses by big corporations who filed Chapter 11 bankruptcy.
If you get an opportunity please visit the CSPAN archives and read what Senator Ted Kennedy said about that bankruptcy changes in 2005, that were designed to prevent bankruptcy abuse but in many ways created more obstacles for legitimate debtor's needing bankruptcy relief. Here is an excerpt.
Senator Ted Kennedy's thoughts on the 2005 Bankruptcy reform:
"This legislation that we have before us cracks down unfairly on large numbers of hard-working families that are in dire financial straits because of a sudden serious illness...Yet, this bill blatantly ignores the real abuses in our bankruptcy laws: the corporate abuses that have become epidemic in recent years...Current law on corporate bankruptcy is grossly inadequate in dealing with these problems. Often, the very insiders whose misconduct brought the company down do very well in bankruptcy. The people who suffer the most are the innocent victims, the employees, the retirees."
I couldn't have said it better. Senator Ted Kennedy will be sorely missed.
Source: WSJ Blogs