Committee Approves Senate-Passed
Bankruptcy Reform Legislation
Without Amendment |
3/16/2005
Source: House Judiciary Committee |
WASHINGTON, D.C. - The House Judiciary Committee in a bipartisan vote
today approved the Senate-passed bankruptcy reform legislation, S.
256, without amendment. The Committee defeated all 18 amendments
considered; S. 256 then was approved by a 22-to-13 margin by the
Committee. S. 256 now moves to the House floor, where it will be
considered in early April. If, as expected, no amendments are made, S.
256 will then be sent to President Bush for his signature.
House Judiciary Committee Chairman F. James Sensenbrenner, Jr. (R-Wis.)
stated, “The need for bankruptcy reform is long-overdue and crucial to
our Nation’s economy and the well-being of our citizens. Every day
that goes by without these reforms, more abuse and fraud goes
undetected. Every abusive bankruptcy filing adversely affects
hardworking Americans in the form of higher interest rates and
increased costs for goods and services. America’s economy should not
suffer any longer from the billions of dollars in losses associated
with profligate and abusive bankruptcy filings.”
“We need to close the so-called ‘mansion loophole’ now. We need to
ensure that deadbeat parents can no longer use bankruptcy to shed
their child and spousal support obligations. We need to make Chapter
12 - a specialized form of bankruptcy relief for family farmers - a
permanent component of the Bankruptcy Code and to extend that relief
to family fishermen. And, we need to enact important administrative
reforms - like direct appeals, streamlined reorganization procedures,
and additional bankruptcy judgeships - that will reduce unnecessary
burdens upon the current bankruptcy system and by those who must
administer and use it. In short, we need to restore a measure of
personal responsibility and accountability to the bankruptcy system,
and S. 256 advances this crucial goal,” added Chairman Sensenbrenner.
Rep. Rick Boucher (D-Va.), a supporter of S. 256, commented,
“Bankruptcy is becoming a first stop for some, rather than a last
resort, as debtors treat bankruptcy as merely another financial
planning tool and file for bankruptcy for simple convenience. These
practices are permitted under the current bankruptcy law which allows
debtors to walk away from their debts regardless of whether they have
the ability to pay any portion of what they owe. The legislation which
was approved by the House Judiciary Committee today restores personal
responsibility to the bankruptcy system by creating a fair,
needs-based system for bankruptcy filings. It will benefit responsible
consumers who pay the price for bankruptcies of mere convenience in
the form of higher costs for goods, services and credit, a cost
estimated at $400 per family annually.”
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