Why Help Disaster Victims??

[xoxoxoBruce]

In the case of a disaster, natural or otherwise, the government should make every effort to help the victims to safety. But once they are out of harms way, what law or precedent says they must care for the victims rather than traditional relief agencies like the red cross, salvation army, etc?

[Elspode]

Nothing says that...but FEMA does provide low interest rebuilding loans, I believe, as well as some stipends for getting back on one's feet (feel free to correct me if I am wrong, here).

This is a pretty clear-cut case where people in this country need to reach out and help the afflicted. As much as it worries me to do so (because you never know who you'll end up with), we have put ourselves on a list offering to house survivors (I'm on board with the notion that we don't call the displaced from Katrina "refugees") in our home. Mrs. Elspode is trying to find out how to help Heart to Heart International collect material goods for transport to the Gulf Coast, and we've kicked in what cash we can afford to Red Cross.

We feel helpless, but we really feel like we must do *something*. I'll let you know if we end up with guests...

[warch]

I don't get the idea that the word "refugee" is bad. How is that derogatory? And if you feel its derogatory, what does it say about using to describe others forced out of their homes by forces beyond their control? They need refuge. Refuge is what they are getting.
How is "victim" a better term?

As to the topic, its economic investment for the long haul. If the majority get back on their feet, its better for all of us. If we allow them to slip even if they are trying, Its ugly and we pay for that in the end, anyway.

[xoxoxoBruce]

I agree it's a good idea on an economic basis.
I feel much more strongly it's the right thing to help people that need it especially from forces beyond their control.
But what is the governmental obligation beyond rescue and low interest loans.
I suppose you can include an obligation to try and prevent disasters, too.

I've been mulling this over since they paid millions to the families of 9-11 victims. I was told the reason for that was to protect the airlines from being sued out of existence.

When wildfires burn down whole neighborhoods, does the government do more than rescue and FEMA loans?

[xoxoxoBruce]

Some answers from Slate

How do you pay for a house that no longer exists? By Avi Zenilman

Preliminary reports indicate that many New Orleans homeowners don't have financial protection in case of flooding, which isn't covered by most home insurance providers. If insurance can't pick up the slack, do you still have to pay a mortgage on a house that no longer exists? And if so, how?

Most mortgages must be paid back in full—whether you pay out of pocket or an insurance agency covers you. Bankrupt individuals, however, are exempt from payment.

More commonly, aid is sought from the Federal Emergency Management Administration. The first step to receiving FEMA assistance is to register your personal information with the agency via telephone or this Web site.

Applicants must provide their Social Security number, insurance status, and family income, and FEMA asks that individuals provide as much contact information as possible, such as mailing address and phone number.

FEMA directs most homeowners and renters to the Small Business Administration, which gives out low-interest loans to people in declared federal disaster areas. Once a mailing address is established, the SBA sends a loan application form, along with this guide to disaster relief. The disaster recovery loans, which are capped at $200,000 for a house and $40,000 for other personal property, pay for repairs and mortgage refinancing for people without enough homeowner's or flood insurance. This interactive SBA map shows how many people took out disaster loans last year.

If the SBA determines that an applicant cannot afford a loan, FEMA can step in and pay for repairs and construction. Both programs require applicants to prove that their insurance would not cover the damage.

The process of obtaining an SBA loan or FEMA assistance often takes a while. Victims of 2004's Hurricane Ivan, for example, have until Sept. 12 to file for damages. This is because insurers and the SBA need ample time to process and verify the enormous number of damage claims before they can begin reimbursement.

Those who can't get insurance coverage or federal help in time to pay their mortgage are personally liable for their homes and are possibly vulnerable to foreclosure. Some banks have already begun to assuage these fears by granting borrowers at least a 90-day extension for their payments.

If you go to the Slate link, this story contains a bunch of good links.

[richlevy]

Unfortunately, Katrina happened after the recent changes to the bankruptcy laws, which means that some residents cannot declare Chapter 13 after October 17th.

From here

Most of the poorest would still be eligible for Chapter 7, if they could prove that they were poor. I'n not sure if the mandatory counseling applies to those seeking Chapter 7. It would be sort of interesting to make someone pay for financial counseling sessions.

The law contains exceptions for certain groups. For example, disabled veterans and troops on active duty are excluded from the income means test, Plunkett said. People who are in persistent vegetative states and those who are deployed overseas are excluded from the credit-counseling requirement, he said.

Counselor: "Can you tell me the mistakes that got you here?"
Debtor: "Uh, living in front of a Hurricane"

It is nice to know that Terri Schaivo wouldn't have been required to attend a credit counseling session.

The Bankruptcy Abuse Prevention & Consumer Protection Act, which President Bush signed into law April 20, allows only people who earn less than their states' median income to file for Chapter 7 bankruptcy protection, which lets them erase their debts after they forfeit their assets. Those who earn more than the state median income and can repay at least $6,000 over five years must file under a Chapter 13 bankruptcy-reorganization plan, which requires some repayment.

The law would force about 10 percent of debtors to seek Chapter 13 debt relief instead of Chapter 7 protection, studies have found. As a result, creditors would net an extra $1 billion to $4 billion in debt repayments over a five-year period, according to similar studies.

The law also requires bankruptcy filers to submit more paperwork, such as tax returns and paycheck stubs, and to get credit counseling — at their own expense — within six months of applying. It bases a petitioner's current income on the average amount earned for the six months preceding the application.