Joe Biden Passed Legislation that Stripped Borrowers of Bankruptcy Protection


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.
Michelle Labayen

Michelle Labayen

Michelle Labayen has been practicing Consumer and Bankruptcy law for more than 16 years. She is a member of the National Association of Consumer Bankruptcy Attorneys (NACBA), and the National Association of Consumer Attorneys ( NACA).

In addition, she is a Max Gardner Bootcamp graduate. Extensive experience has given Michelle a thorough understanding of bankruptcy, including:

  • Chapter 7
  • Chapter 13
  • Adversary Proceedings
  • Litigation under the Fair Credit Reporting Act
  • Litigation under the Fair Debt Collection Practice Act
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Contact Michelle, today, and get on the path to financial freedom.


The Law Office of Michelle Labayen, LLC Can Help With The Bankruptcy Process

Anyone can qualify to file for bankruptcy. There isn’t an exact amount of debt or financial difficulty required. You don’t have to show insolvency or meet a certain standard.

You should always speak with a lawyer before beginning the bankruptcy process to ensure it’s the best option for you. Michelle Labayen is a knowledgeable and experienced bankruptcy attorney with offices in New York, NY, and Newark, NJ. Florida licensed attorney Drew Gaddis is counsel and would be representing all clients in Florida.

Miami Bankruptcy Office

100 SE 2nd St Suite 2000 #A
Miami Tower
Miami, FL 33131
Phone: (786) 209-2327