Bankruptcy Bill Puts Women's Economic Status and Reproductive Rights at Risk

May 21, 2002

"The federal bankruptcy bill, as it stands now, is a gift to the U.S. credit card industry at the expense of women and their families," said NOW Action Vice President Olga Vives. "More than 1.2 million women a year will be affected by this legislation—women who have faced serious hardships and are trying to put their lives back together, as well as women who rely on alimony and child support to keep their families afloat."

"At the same time, members of the House have shamefully refused to follow the Senate's lead and close loopholes in the law that allow violent anti-abortion criminals to escape paying legal fines, damages and fees," Vives added. Sen. Charles Schumer, D-N.Y., introduced a Senate provision preventing anti-abortion extremists from declaring bankruptcy in order to dodge civil damages assessed against them.

Operation Rescue and its leaders have pioneered the use of bankruptcy laws in an effort to evade financial responsibility for their actions. Randall Terry filed for bankruptcy in New York after a judgment against him was obtained by NOW, and Joe Foreman did the same in Virginia after NOW won a judgment against him in that state. In NOW v. Scheidler, a racketeering case in Illinois, the judgments against Joe Scheidler and Operation Rescue amounted to $258,000 in favor of the plaintiff clinics. Without the closing of this loophole in the bankruptcy laws, these defendants, already found guilty of racketeering, stand to walk away without consequence.

Vives points to last week's 9th Circuit Court of Appeals decision in Planned Parenthood v. American Coalition of Life Activists as an example of penalties that could be evaded. The ruling held abortion foes liable for threats against the lives of abortion providers, threats such as "wanted" posters and the "Nuremberg Files" web site which listed doctors' names and personal information. "These penalties can be critical in protecting the lives of abortion providers and maintaining women's access to full reproductive services."

The failure of the House to incorporate the Schumer amendment is not the only reason NOW opposes the bill. The National Organization for Women, along with other women's rights and consumer groups, has opposed various incarnations of the so-called Bankruptcy Reform Act for over four years. This week the House and the Senate will meet to reconcile two versions of the bill and it appears likely that the legislation will be sent to and signed by George Bush.

"Before this bill reaches George Bush, we must ensure that it will not put women's financial well-being or reproductive rights at risk," said Vives. "We urge the conference committee to create a bill that does not prioritize commercial creditors ahead of women and their children trying to collect child support and alimony. And we stand strongly with Sen. Schumer in his determination to hold perpetrators of clinic violence accountable for their actions."

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