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Americans Are
Skeptical About Congressional Bankruptcy Reform
NEW YORK , NY
-- (INTERNET WIRE) -- In a surprising show of national
skepticism, half of all Americans believe that Congress may be
pushing for bankruptcy reform solely because of large campaign
contributions made by banks and credit card companies, according
to a telephone survey of 1,015 Americans.
And a
surprisingly large percentage of Americans (34%) have personal
knowledge of the present bankruptcy system -- and believe that
it "works fairly."
The figures
are the result of a nationwide opinion poll conducted by Opinion
Research Corp. Inc. of Princeton, N.J., that was commissioned by
New York entertainment and governmental affairs publicist Jeff
Barge. The survey has a margin of error of 3%.
"After
seeing the banking industry get favor after favor from Congress,
it's not surprising that Americans are so skeptical about the
need for bankruptcy 'reform,'" says Mr. Barge. "And
almost half of all bankruptcy filings are made because of huge
medical bills – about 500,000 last year. That makes it even
more surprising that this issue is getting such a big push in
Congress."
According to
Common Cause, the bank and lending industry has given
Republicans, who are sponsoring the bankruptcy legislation, over
$11.2 million dollars in campaign contributions since 1995,
while the Democrats received $5.3 million. Credit card and
banking industries have spent an estimated $5 million in
lobbying for these changes, according to another source.
Every year,
approximately 1.3 million Americans nearly 1 in every 100
households declare bankruptcy. Total credit card debt has more
than tripled in the past decade, from about $172 billion in 1989
to about $585 billion in 1999.
Survey: Support for Existing
System
According to the survey,
48% of Americans believe that Congress should not change the
present bankruptcy law to make it easier for companies to sue
poor people in court and take their wages. Opposition to the act
is fairly steady across all income levels, with those with
incomes of $15-25,000 a year the most opposed to such a bill
(57%).
Fifty-eight
percent of those in the 25-34 age group opposed such a change,
compared to 50% of those in the 45-64 age group. And 58% of
blacks opposed this type of reform, as opposed to 49% of whites
and 46% of Hispanics.
The study
revealed that a surprisingly large number of Americans have had
some personal experience with bankruptcy: 34% of those surveyed
stated that they are personally aware of one or more families
that have been forced to file for bankruptcy and feel that the
present system worked fairly in those cases.
That figure of
support for the present bankruptcy system rose to 41% of those
surveyed in the country's Western states, where a severe
recession combined with a fall in the value of homes forced many
into bankruptcy in the early 1990s. Thirty-two percent of those
in the Northeast, 33% in the North Central, and 32% of those in
the South say they have some personal knowledge of the
bankruptcy system and believe it works fairly.
Cash Machine Fees: A Stronger
Reaction
While showing skepticism
about bankruptcy reform, Americans show overwhelming support for
Congressional regulation of bank cash card fees. According to
the survey, 57% of Americans say that cash machine fees are too
high and should be regulated by Congress.
Overall, 55%
of men and 58% of women felt that cash machines fees were too
high and should be regulated. As to age, an astounding 74% of
those in the 25-34 age group feel this way, as compared to just
50% of those in the 45-64 age group. Support for cash machine
fee regulation also runs strong among those living in larger
households: Those who live in households of three or more were
strongly in favor of such regulation. (63%).
Sixty-nine
percent of those in North Central states and 67% of those in the
Northeast felt bank machine fees were too high and should be
Congressionally regulated, compared to just 60% of those in the
South. And 78% of blacks surveyed felt the fees were too high
and should be regulated, as compared to 53% of whites and 68% of
Hispanics.
The Opinion
Research Corp. Inc. report presents the findings of a telephone
survey conducted among a national probability sample of 1,014
adults comprising 510 men and 505 women 18 years of age and
older, living in private households in the continental United
States.
Changes Could Stifle
America's Entrepreneurial Spirit, Say Statistics
The House version of the
bill would bar debtors who are able to repay $6,000 or more
over five years from access to Chapter 7's more lenient process.
The Senate's bar would be set at $15,000, or 25% of their
remaining debt over five years.
Mr. Barge, who
sponsored the survey, notes that experts fear that changing the
bankruptcy laws will stifle entrepreneurial endeavors in America.
At present, 11 out of 100 Americans create a new business each
year, in contrast to just 3 out of 100 in Germany. "If one
looks at statistics on the number of Americans each year who are
starting new businesses, this so-called reform clearly would
serve as a brake on that," he says. Among others, Henry
Ford started over a dozen companies that failed before finally
hitting the right formula, says Mr. Barge.
Mr. Barge's
firm, Lucky Star Public Relations, specializes in public affairs
and entertainment, with past clients including the political web
site E- The
People, the National Knitwear and Sportswear Association,
Buddhist Lama Surya Das, and best- selling authors Stephen
Pollan and Steven Carter.
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