By Julianne LaJeunesse, University Of New Mexico-Talk Radio News Service
Elizabeth Edwards testified at a hearing Tuesday in favor of changing current bankruptcy law to one that includes medical debt. At the Senate Judiciary Subcommittee on Oversight and the Court, Edwards said Kerry and Patrick Burns, constituents of Sen. Sheldon Whitehouse (D-R.I.) are "exactly the reason" why Whitehouse's Medical Bankruptcy Fairness Act of 2009 is important.
Edwards, wife of former Senator and Presidential Candidate John Edwards (D-N.C.), spoke at the hearing as a senior fellow at the Center for American Progress, and said that without health care reform, family's yearly health insurance payments could exceed $30, 000 by the end of the next decade.
Edward suggested Whitehouse consider additional interim steps for his bill, but said, "the problem is simply an issue associated with our failing to address adequately, and I hope that we will be addressing, the medical insurance problems that exist in this country."
Kerry Burns of Coventry, Rhode Island testified about her experience with bankruptcy, saying that in March, she lost her son Finnegan to a Cystic Fibrosis related illnesses. She told the Congressmen about the many surgeries Finnegan underwent, and said that because of gaps in her health insurance coverage, her and Patrick couldn't pay their mortgage and lost their home. The Burns are filing for bankruptcy now, and their experience, Whitehouse said, is one that would be covered under his bill.
"We actually had to borrow the money in order to officially go bankrupt," Burns said. "As if this were not enough, a credit counseling class is required both before and after the filing, with fees in addition to the filing."
Whitehouse's bill if passed, would waive both the "means test" and credit counseling requirements for those seeking bankruptcy, and at the hearing, Sen. Russ Feingold (D-W.I.), a member of the Committee, asked Whitehouse to be a co-sponsor.
Committee Ranking Member Sen. Jeff Sessions (R-Ala.) said he felt compassion for the Burns family, but said that under the current Bankruptcy Act of 2005, the Burns could have avoided some of the expenses paid during their bankruptcy application. Sessions made it clear at the hearing, that he believes Whitehouse's bill is a move away from moral financial responsibility.
Aparna Mathur, an economist at the American Enterprise Institute also expressed concern about bankruptcy fraud, saying, "Where do we draw the line for who we want to help and who we don't. The most effective solution to the problem of rising bankruptcies, is to create the right conditions for an economic recovery so that families can hold on to their jobs, retain their earning power, stay in their homes, and live within their means. We should help avoid bankruptcy rather than making it easier to file it."
Edwards countered Mathur's argument, adding that bankruptcy judges are "in the very best position" and "they're sitting with the debtor in front of them, with the creditors who are going to give information if they know it, right there in front of them."
Elizabeth Edwards Says Medical Debt Deserves Bankruptcy Protections
Elizabeth Edwards testified at a hearing Tuesday in favor of changing current bankruptcy law to one that includes medical debt. At the Senate Judiciary Subcommittee on Oversight and the Court, Edwards said Kerry and Patrick Burns, constituents of Sen. Sheldon Whitehouse (D-R.I.) are "exactly the reason" why Whitehouse's Medical Bankruptcy Fairness Act of 2009 is important.
Edwards, wife of former Senator and Presidential Candidate John Edwards (D-N.C.), spoke at the hearing as a senior fellow at the Center for American Progress, and said that without health care reform, family's yearly health insurance payments could exceed $30, 000 by the end of the next decade.
Edward suggested Whitehouse consider additional interim steps for his bill, but said, "the problem is simply an issue associated with our failing to address adequately, and I hope that we will be addressing, the medical insurance problems that exist in this country."
Kerry Burns of Coventry, Rhode Island testified about her experience with bankruptcy, saying that in March, she lost her son Finnegan to a Cystic Fibrosis related illnesses. She told the Congressmen about the many surgeries Finnegan underwent, and said that because of gaps in her health insurance coverage, her and Patrick couldn't pay their mortgage and lost their home. The Burns are filing for bankruptcy now, and their experience, Whitehouse said, is one that would be covered under his bill.
"We actually had to borrow the money in order to officially go bankrupt," Burns said. "As if this were not enough, a credit counseling class is required both before and after the filing, with fees in addition to the filing."
Whitehouse's bill if passed, would waive both the "means test" and credit counseling requirements for those seeking bankruptcy, and at the hearing, Sen. Russ Feingold (D-W.I.), a member of the Committee, asked Whitehouse to be a co-sponsor.
Committee Ranking Member Sen. Jeff Sessions (R-Ala.) said he felt compassion for the Burns family, but said that under the current Bankruptcy Act of 2005, the Burns could have avoided some of the expenses paid during their bankruptcy application. Sessions made it clear at the hearing, that he believes Whitehouse's bill is a move away from moral financial responsibility.
Aparna Mathur, an economist at the American Enterprise Institute also expressed concern about bankruptcy fraud, saying, "Where do we draw the line for who we want to help and who we don't. The most effective solution to the problem of rising bankruptcies, is to create the right conditions for an economic recovery so that families can hold on to their jobs, retain their earning power, stay in their homes, and live within their means. We should help avoid bankruptcy rather than making it easier to file it."
Edwards countered Mathur's argument, adding that bankruptcy judges are "in the very best position" and "they're sitting with the debtor in front of them, with the creditors who are going to give information if they know it, right there in front of them."