BANKRUPTCY REFORM MAY BE “BATTLE FATIGUED”

January 23, 2003

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The American Banker reported theat most supporters of bankruptcy reform legislations admit that they are discouraged and may ultimately withdraw after spending six years pushing the bill. Not only does the measure have a history of collapsing just as the battle seemed won each Congressional term, but is has lost some of its appeal to financial services industry executives over the years as lawmakers have kept narrowing the number of debtors would be forced into Chapter 13 repayment plans

Still, the most ardent congressional and industry supporters are working to craft a strategy to overcome the parliamentary obstacles, especially in the closely divided to overcome the parliamentary obstacles, especially in the closely-divided Senate. Ideas include bypassing committee action in the Senate and attaching the bill to an appropriations or other must-do bill to get the 60 votes necessary to prevent procedural stalling tactics.

Editors Note: I would count on the consumer credit industry coming back strongly this congressional session, now that they have majorities in both houses of Congress, and a President willing to sign the anti-consumer legislation.

Folks, don’t be fooled. If you are an ordinary consumer, the Republican controlled Congress is not on your side. Bankruptcy reform legislation will no doubt be introduced in this session, and there is an excellent chance it will pass. They may have to shove it through after midnight like they did last year, but don’t put it past them.