DASCHEL PREDICTS REFORM WILL GO TO PRESIDENT’S DESK BY END OF MARCH

March 6, 2002

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The bankruptcy reform bill that is so unkind to consumers may be signed by the President by the end of March, according to the top Senate Democrat.

Senate Majority Leader Daschle (D-SD) anticipates the House and Senate overcoming their differences over pending bankruptcy reform legislation (H.R. 333).

On February 26th, House Republican members, along with House Judiciary Committee Chairman James Sensenbrenner (R-WI), presented Senate Democrats with a package of proposed compromises thought to resolve the two sides’ differences on various matters, including disputes over controversial state homestead exemptions and provisions relating to abortion clinic violence.

Sensenbrenner promised the legislation will make it to the president’s desk before Congress adjourns for its spring recess, which is schedule to begin March 25.

The reform bill, if it becomes law, will make it much more difficult for many consumers to file bankruptcy. It will also make filing bankruptcy more expensive, and it will remove many of the consumer protections that are contained in our current Bankruptcy Code. The consumer credit industry has heavily lobbied in favor of this bill, contributing over $60 Million to Members of Congress to date.

There is currently a 180 day delayed effective date in the bill, so that after the President signs it, it is not fully effective for about 6 months. However, this could be changed at any time.