OFFICIALS LEGISLATION INTEREST GROUPS PUBLIC STATEMENTS COMMITTEES VETOES

Bankruptcy Abuse Prevention and Consumer Protection Act of 2005

Date: March 10, 2005
Location: Washington, DC
Issues: Finance and Banking


BANKRUPTCY ABUSE PREVENTION AND CONSUMER PROTECTION ACT OF 2005--Continued -- (Senate - March 10, 2005)

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Mr. SCHUMER. Mr. President, I will address both the Schumer second-degree amendment and the underlying Talent amendment. This all relates to the millionaire's loophole.

Mr. TALENT. Will the Senator yield for a second? Does the Senator want to ask unanimous consent to have 4 minutes at once here, which we talked about before?

Mr. SCHUMER. I think that is what the Chair called for. Am I right?

The PRESIDING OFFICER. That is correct.

Mr. TALENT. So it is 4 minutes equally divided.

The PRESIDING OFFICER. Without objection, it is so ordered. It is 4 minutes equally divided, 2 minutes on each side.

Mr. SCHUMER. Mr. President, we have debated this before when I offered an amendment to close the millionaire's loophole. My colleagues may recall the millionaire's loophole will allow a millionaire to shield his or her assets in a certain type of trust. It would not be susceptible to bankruptcy. The millionaire could then declare bankruptcy, shed his debts, and still have the assets in the trust. It is an egregious abuse.

Unfortunately, my amendment was voted down. My friend from Missouri has offered an amendment that frankly keeps the status quo. I understand many on the other side are sort of pained that they had to vote against this amendment, but let me tell colleagues what the Talent amendment does.

It requires a showing of intent to defraud in order to not shield the assets. Well, give me a break. Or as my kids would say: Hello.

Which millionaire is going to hire a lawyer and say, make sure you leave a paper trail so they can prove intent? Of course, one cannot prove intent, particularly if the actual intent is to hide the assets.

So in all due respect to my good friend from Missouri, this amendment is simply a subterfuge. Make no mistake about it, the Talent amendment will not rectify the millionaire's loophole, will not provide cover for people who seek cover. If we want to correct the Talent amendment, vote for the Schumer second-degree to Talent, which eliminates the intent requirement.

One more point. Aside from the intent issue----

The PRESIDING OFFICER. The time of the Senator has expired.

Mr. SCHUMER. I guess there are no more points.

I yield the floor.

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