DEAL VERY CLOSE ON BAD BANKRUPTCY BILL

June 19, 2002

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The Washington Post reported this morning that a group of congressmen, including Sen. Charles Schumer (D-N.Y.) and Rep. Henry Hyde (R-Ill.), tentatively reached an agreement on the last issue holding up passage of the bankruptcy legislation, sources said. The lawmakers agreed in principle on how to word an amendment to prevent anti-abortion demonstrators from filing for bankruptcy Protection to discharge court-ordered fines imposed on them from illegally blocking access to abortion clinics, reported the Post.

However, in a call with the American Bankruptcy Institute this afternoon a spokesperson from the House Judiciary Committee said, “The Post is accurate as in we’re close (to reaching an agreement), but I wouldn’t characterize it as an agreement until the language is agreed upon.”

This bankruptcy legislation was sponsored and pushed through Congress by the credit industry, which has spent an estimated $100 Million in campaign contributions. If it becomes law (which appears much more likely now) it will be far more difficult and expensive to file personal bankruptcy, and bankruptcy will give an individual less protection from creditors.

The current bill has a six-month delayed effective date, so that it would not become effective for six months after the President signs the bill into law. However, Congress has been known to amend bills in the wee hours of the morning, so nothing is certain.