Before Biden and Warren were at odds for the Democratic Presidential nomination, they faced off against bankruptcy protection laws. Biden successfully stripped them away right before the 2008 housing crisis.
What Does Joe Biden Have to do With Student Loan Debt?
In 2005, Biden pushed through a bill called the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) intended to prevent people from abusing a Chapter 7 bankruptcy filing. Restrictions were made for an income threshold, as well as types of credit card debt, and discharging student loan debt.
GQ called Biden’s 2005 bill “the single piece of legislation most responsible for putting the U.S. in the current student debt crisis”.
Warren was a Harvard Law Professor at the time. She hadn’t been elected as a Massachusetts Senator, yet, but testified against the bill and its detrimental harm to people seeking their right to debt relief.
The Biden’s Profited while Student’s Suffered… And Still Do
The bill benefited credit card companies which hold tremendous political power in Biden’s home state, Delaware. He argued against criticism of his questionable allegiances to corporations over the people, but the evidence was stacked against him.
Hunter Biden received a six figure salary from the largest credit card company in Delaware: MBNA. This put his father in hot water due to his business interests.
The GQ article continued: “Melissa Jacoby, a University of North Carolina law professor specializing in bankruptcy, told Politico, ‘I doubt that the bill reined in the abuses that the bill was premised on, in part because they didn’t necessarily exist in the first place.’”
Biden’s Excuse Doesn’t Fix the Problem
Biden’s campaign team is trying to spin this debacle as a necessary bill to appease Republicans in order to get other legislation passed. The bill did pass with unanimous Republican support, but to what benefit and what cost to US citizens?
The facts are undeniable: BAPCPA stripped borrowers of their rights to bankruptcy protection, rights that are set in the US Constitution, as well as contributed to the trillions of accumulating student debt.
Miami, Florida’s Student Loan Debt Attorney
If you’re facing insurmountable student loan debt, you need help navigating the complicated bankruptcy laws. At the Law Office of Michelle Labayen, LLC, you will get the best advice from Michelle’s 16 years of experience.
Get your debt issues solved so you can get a fresh start. Call Michelle now at (973) 622-1584
, or contact her online