The Biden Plan for Bankruptcy Reform
Biden is adopting Senator Warren’s comprehensive proposal, Fixing Our Bankruptcy System to Give People a Second Chance. In 2005, Biden worked hard to add progressive reforms to a bankruptcy bill that was going to be passed with or without him. Today, he agrees firmly with Senator Warren that we need to fundamentally reshape our bankruptcy system.
As described by Senator Warren in her plan, this plan will:
- Make it easier for people being crushed by debt to obtain relief through bankruptcy.
- Expand people’s rights to take care of themselves and their children while they are in the bankruptcy process.
- End the absurd rules that make it nearly impossible to discharge student loan debt in bankruptcy.
- Let more people protect their homes and cars in bankruptcy so they can start from a firm foundation when they start to pick up the pieces and rebuild their financial lives.
- Help address shameful racial and gender disparities that plague our bankruptcy system.
- Close loopholes that allow the wealthy and corporate creditors to abuse the bankruptcy system at the expense of everyone else.