BANKRUPTCY REFORM CONFERENCE TO MEET NEXT WEEK

November 7, 2001

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The House-Senate conference committee on bankruptcy will have its first meeting on Wednesday, Nov. 14. Observers said they do not expect much to come out of the conferees’ initial meeting. Lawmakers will probably direct their staffs to continue working on the legislation over the winter recess, to help set the stage for member-level negotiations early next year, sources said.

House Judiciary Committee Chairman James Sensenbrenner (R-Wis.), who will chair the conference committee, said he foresees a prolonged delay and a possible stalemate for the committee, CQ Daily Monitor reported. “We’ll keep trying all next year,” he said. “I really don’t hold out a lot of optimism.”

There are 36 major differences between Senate and House versions of the bill (H.R. 333) and that “at least 26 of them are relatively easily resolved,”
Sensenbrenner said. The rest are a bit more difficult, however, including a dispute over language in the Senate version of the bill (S. 420) that would cap at $125,000 the home equity that could be shielded from creditors during
bankruptcy. The White House opposes the provision because President Bush’s home state of Texas is one of five states with an unlimited homestead exemption. Representatives from those states are also likely to oppose efforts to limit the exemption. Another dispute is expected over language
sponsored by Sen. Charles Schumer (D-N.Y.) that would prevent abortion protestors from escaping fines and civil judgments.