Rep. Chabot on Bankruptcy

The $700 billion bailout would cost taxpayers about $6,000 to $10,000 per household, said Rep. Steve Chabot (R – Ohio) in a conference call which included Wade Henderson of the Leadership Conference on Civil Rights and Mike Calhoun of the Center for Responsible Lending.

“Congress would lift the federal debt…to over $11.3 trillion,” said Chabot.

Chabot had serious concerns about the bailout bill. “This would set a dangerous precedent in getting the federal government this involved in what in essence is supposed to be a market-based system…[I] am concerned this will not be the last bailout.” Chabot felt that taxpayers should not have to deal with the problems that Wall Street created and he felt that nothing was being done to help the Americans that faced bankruptcy.

Henderson and Calhoun discussed a bankruptcy bill that would make it easier for families to pay off their mortgage. The bill would have prevented “up to 600,000 forclosures,” said Calhoun, “but because of intense pressure by industry lobbyists, the same industry that created the crisis and is receiving its own life preserver from the government, this provision was blocked.”

Chabot was in favor of the bill. “We’re not doing anything to really help these people, who, if we had helped them, we might not be in the problems we’re in right now.” It is not likely that the bankruptcy bill will be included in the bailout package which the House will vote on this week, but Chabot is hopeful that the bankruptcy laws will be changed in the future.