BANKRUPTCY PANEL MEETS, LITTLE PROGRESS
November 15, 2001
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The House-Senate conference committee convened yesterday on the bankruptcy legislation, but even the committee’s chairman didn’t know the prospects of wrapping it up by the end of the year. “If we make it, we make it; if we don’t, we don’t,” House Judiciary Chairman James Sensenbrenner (R-Wis.) said. The panel was scheduled to meet on Sept. 12, but was postponed due to the terrorist attacks.
Republicans pointed out that the economy was slowing down before Sept. 11, but held the view that the ailing economy, coupled with the attacks, has created an atmosphere which now calls for bankruptcy reform. “Bankruptcy reform is needed now more than ever to help our ailing economy,” Sensenbrenner said. Senate Judiciary Committee ranking member Orrin Hatch (R-Utah) echoed Sensenbrenner’s remarks. Rep. George Gekas (R-Penn.) said that the timing doesn’t matter for the legislation because it was created to help people in any situation. “We didn’t do it [bankruptcy legislation] for a good or bad time… we did it for all times,” he said.
Proponents were met with strong opposition. Democrats against the bill cited the Sept. 11 attacks as a disruption to the economy, creating large numbers of layoffs and crumbling consumer confidence. They said that now is not the time for bankruptcy legislation. “While our nation is engaged in a recession and has a military engagement abroad, I strongly object to what is about to happen in this conference,” said House Judiciary Committee ranking member John Conyers (D-Mich.). “The economy is shrinking. Half a million people lost their jobs last month and more are losing them each day.”
Senate Judiciary Chairman Patrick Leahy (D-Vt.) indicated he wanted to bring in a host of other issues, possibly including a provision addressing Tuesday’s Supreme Court case he said upheld an “anti-consumer” reading that would make it more difficult to stop identity theft. Sen. Charles Schumer (D-N.Y.) said his support depends on the bill’s inclusion of an amendment he drafted that deals with abortion clinic violence. In a statement, Sen. Paul Wellstone (D-Minn.) said the bill’s proponents had exercised terrible timing both for the economy and America’s consumers. “In the best of times, this bill would be terrible for consumers and regular working class families, but its effects will be all the more devastating now that we have a weakening economy,” he said. Rep. Jerrold Nadler (D-N.Y.) also disagreed with the legislation and said, “Consider the danger we face from creating uncertainty and excess litigation in the bankruptcy system. Let us not do anything that might set back the nation’s chances for economic recovery.” You can read their statements on the home page of ABI World at http://www.abiworld.org).
In support of the legislation, the Financial Services Roundtable took out a full-page ad in yesterday’s issue of CongressDaily saying, “Passage of the Bankruptcy Reform Act of 2001 will prevent abuse of the system while preserving the bankruptcy safety net. It will permit a fresh start for those who really need it. Curbing bankruptcy abuse now is the right thing to do. It’s right for these times — and right for the American consumer.”
Sensenbrenner directed staff members to work on joint legislative proposals and said the committee would meet again after Thanksgiving. No meeting date was announced.
