Maryland Attorney and Lawyers

Dir Texas George W. Bush set can be avoided at the bottom on most issues in his run for the presidency so far, but when it is a movement in Congress to replace Texas is sacrosanct, but controversial “outbreak liberation, “Bush is firmly on record. It is opposed to a modification.

In Texas, a populist sides of a State by the debtor South had lost their farms, the release shields home a house of creditors in bankruptcy proceedings - even if the homeland is worth Spread million.

But a study by Congress’ General Accounting Office, now, that long space protection a little more difficult to defend, say the critics.

The study is based on an analysis of about 30000 cases of bankruptcy in two districts of the Federal Court in Texas and Florida, has shown that a limitation of $ 100000 Home Equity to be protected - a reform pushed by several senators - not that would affect a handful Human relatively prosperous. The results suggest that few, that the home unlimited exemption is not populist shield, it has often been split up, but a little more comfortable for the protection of people rich.

Of the estimated 14000 cases of Chapter 7 bankruptcy closed in the northern district of Texas in 1998, half of a home exemption claim GAO. But only 83 per cent, or nearly 1 part household exemptions of $ 100000 in Home Equity. This is the ceiling proposed by Senator Herb Kohl (D-Wis.), Ranking Democrat a sub-committee on justice and home affairs Senator Jeff Sessions (R-Ala.), on behalf of the GAO study.

“Although little doubt that the debtor deserve a roof over their heads, this exemption has been abused several times,” said the cabbage a hearing in the Senate last year. He added that the debtor move millionaire States like Texas and Florida and continue to live like kings, while their creditors only receive little or nothing at all. ”

Kohl, on the basis of its outrage about reports on spotted wealthy individuals, as movie actor Burt Reynolds baseball and former commissioner Bowie Kuhn, possession of luxury homes, despite hundreds of thousands or Millions of dollars of unpaid debts.

Although the GAO study there were no extreme cases like this, because it is estimated that in the two districts studied, there were over 150 cases in which the debtor held high cost of housing, while amortization of $ 50 million of debt.

For example, revealed by the GAO, an attorney for the Texas bankruptcy to live in a house of $ 386000, with $ 1.5 million in debt. In the Texas law, creditors have not been able to say that one of the values of their homeland, in which it $ 146000 dividend of values.

The home without restricting the exemption in three other states of Texas and Florida next: Kansas, Iowa and South Dakota. Most countries do allow small exceptions. In Maryland and Virginia, the debtor in insolvency proceedings can shield $ 5500 and $ 6500 a Home Equity, respectively, while in the District of Columbia, they can not all signs Home Equity, after the bankruptcy Review Commission.

Lobbying politicians in Texas in recent years has contributed to the helm of a church ceiling for the exemption amount, as States.

Bush, GOP Lt. Dir Rick Perry and Texas House spokesman Pete Laney, a Democrat, signed a letter to Congress last year against coercion. She wrote that the ceiling would be a “clear violation of the country” on private property rights. ”

Other Democrats, Texas, including Rep. Sheila Jackson Lee, also against the Confederation of ceilings exemption. And the office of the State of Texas in Washington, under the direction of Bush, has been lobbying against the changes, sources said.

An adviser to Bush said last week that the release of the house was a place for target practice, not a campaign issue.

The House of the bankruptcy of the 1998 reform has gone on the ground with a $ 100000 limit, but he was impressed by the bill during the debate. Congress interrupted before resorting to legislation.