Warren proposes repeal of Biden-backed bankruptcy law of 2005


Senator Elizabeth warrenElizabeth Warren Senate Democrats Propose Minimum Business Tax on All Spending (D-Mass.) On Tuesday rolled out a plan to repeal parts of a 2005 bankruptcy law, reigniting a feud with the former vice president Joe bidenJoe BidenBiden Calls On Trump To Try To Boost McAuliffe Ahead Of Election Day Business Lobby Calls On Administration To ‘Pump The Brakes’ On Vaccine Mandate Overnight Defense & National Security – Presented By Boeing – Afghanistan Calculus Won’t shows no stop sign MORE as they fight for the 2020 Democratic presidential nomination.

Warren supported removing the provisions of the law, which was championed by Biden when he was a senator from Delaware, which made it more difficult for families to seek bankruptcy protection.

Warren, who was then professor of bankruptcy law at Harvard, was one of the leading academic critics of the 2005 bill. She testified against it in the Senate, training with Biden in a litigation committee hearing.

But the bill authorized the House and Senate with bipartisan support and was signed by former President George W. Bush.

“I lost this fight in 2005, and working families paid the price,” Warren wrote in an article on Medium.

Warren’s proposal would remove several aspects of the law, including means testing, separate wealth-based consumer bankruptcy processes, credit counseling, and other requirements she called “onerous and complicated.” .

She also proposed allowing the cancellation of student loans in bankruptcy and provisions to help bankrupt families keep their homes and cars.

The bankruptcy reform proposal reflects a key part of Warren’s main speech to voters. She has long cited her research into bankruptcy as the driving force behind her time on the left flank of the Democratic Party and her election to the Senate.

“When I started my career as a young law professor, I thought – like many people back then – that most families went bankrupt because they were irresponsible or wasteful,” Warren wrote.

“But when I started teaching bankruptcy, I found that no one – not even the supposed ‘experts’ – had actually digged into the data to understand what drove families out of business.”

But the proposal also reignites a battle with Biden less than a month before the Iowa caucuses, the first contest in the 2020 Democratic primary.

Warren’s complicated relationship with the Obama administration has been at the center of his feuds with Biden, who is seen as the front-runner for the Democratic nomination.

Warren became a progressive celebrity while serving on the Congressional panel overseeing the Treasury Department’s administration of the 2008 bank bailout. His criticism of Timothy Geithner, Obama’s first Treasury secretary, angered the White House, but Warren would later serve as Obama’s special adviser during the development of the 2010 Dodd-Frank Wall Street reform bill.

As an advisor to Obama, Warren helped create the Consumer Financial Protection Bureau (CFPB), a financial industry watchdog that she first proposed in a 2007 article she wrote to Harvard. .

Warren and Biden clashed in a primary debate in October over who should claim credit from the CFPB after the former vice president claimed he was the only candidate who knows how to “get things done.”

When Warren cited his creation of the CFPB, Biden countered that he “went on the [Senate] word and you got votes ”for the Dodd-Frank passage.

“I am deeply grateful to President Obama, who fought so hard to get this agency adopted, and I am deeply grateful to everyone who fought for it and helped get it adopted.” , Warren replied.

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