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Presidential candidate Sen. Barack Obama's selection of Sen. Joseph R. Biden Jr. as his running mate has put the two politicians' differing views on bankruptcy law in the spotlight. And as the economic crisis deepens, bankruptcy reform could become a hot issue in the general election in November. Biden staunchly supported the bankruptcy legislation Congress passed in March 2005, while Obama opposed it. Republican presidential rival Sen. John McCain also voted in favor of the legislation to toughen bankruptcy laws. When the law went into effect in October 2005, consumer-bankruptcy filings, which had ballooned in anticipation of the law taking effect, dropped dramatically, as did credit card charge-offs. On the campaign trail, Obama has promised that if elected he would work to reform consumer-bankruptcy laws by easing the process for those able to prove they are filing because of major medical expenses. He also hopes to smooth the process of filing for bankruptcy for military families, seniors and victims of natural disasters. "It's definitely a conflict to have two candidates on the same ticket with such differing positions on bankruptcy laws," Scott Talbott, senior vice president for government affairs at the Financial Services Roundtable, a Washington, D.C.-based advocate for financial-services companies, tells CardLine. "Obama's and Biden's past voting records on bankruptcy reform will continue to be an issue during the campaign." Biden's new role also has put the focus on his family ties to the credit card industry. Biden's son Hunter, a lawyer, worked for credit card giant MBNA from 1996 to 1998 and served as a consultant to MBNA from 2001 to 2005. Bank of America Corp., the nation's largest card issuer, acquired MBNA in 2006. A BofA spokesperson tells CardLine the younger Biden did no lobbying for the company, but he worked on proposed legislation and regulations on the company's use and application of the Internet.
