Double whammy for storm victims

The New York Times, in a page one story, discusses the latest double whammy to befall Hurricane Katrina victims -- a tougher new bankruptcy law. Wisconsin's hero, Rep. F. James Sensenbrenner, has managed to single-handedly insure that victims will get no relief from the new law, by refusing to even hold a hearing to consider it. Not heartless, though, the Journal Sentinel says. Just wrong.

The Times:

Storm Victims May Face Curbs On Bankruptcy

By MARY WILLIAMS WALSH
and RIVA D. ATLAS

When Congress agreed this spring to tighten the bankruptcy laws and crack down on consumers who took on debt irresponsibly, no one had the victims of Hurricane Katrina in mind.

But four weeks after New Orleans flooded and tens of thousands of other residents of the Gulf Coast also lost their homes and livelihoods, a stricter new personal bankruptcy law scheduled to take effect on Oct. 17 is likely to deliver another blow to those dislocated by the storm.

The law was intended to keep individuals from taking on debts they had no intention of paying off. But many once-solvent Katrina victims are likely to be caught up in the net intended to catch deadbeats.

Right after Hurricane Katrina struck, several lawmakers - mostly Democrats but including some Senate Republicans - suggested that storm victims along the Gulf Coast should get relief from the new law's stricter provisions, which are intended to screen filers by income and make those with higher incomes repay their debts over several years. Under the old law, which remains in effect until mid-October, many more filers can have their debts canceled quickly in federal bankruptcy courts.

But House Republicans, who fought off a proposed amendment that would have made bankruptcy filings easier for victims of natural disasters, said there was no reason to carve out a broad exemption just because of the storm.

Representative F. James Sensenbrenner Jr. of Wisconsin, the chairman of the House Judiciary Committee, rejected the notion of reopening the legislation, saying it already included provisions that would ensure that people left "down and out" by the storm would still be able to shed most of their debts. Lawmakers who lost the long fight over the law, he said, "ought to get over it," according to The Associated Press.

A White House spokesman, Trent Duffy, said the administration "doesn't see a lot of merit" in calls to delay the law's effective date but was considering making allowances for hurricane victims.