PARTY SWITCH LEAVES BANKRUPTCY BILL STATUS UNCLEAR

May 26, 2001

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As Democrats prepared to take control of the Senate yesterday after Sen. James Jeffords (Vt.) switched from the Republican Party to become an independent, the future of the bankruptcy reform legislation (S. 420, H.R. 333) remained unclear, according to CongressDaily, as reported by the American Bankruptcy Institute (ABI). When asked about the fate of the bankruptcy legislation, Sen. Joseph Biden (D-Del.) said, “That’s a good question.”

The Senate passed the legislation on March 15, but it has remained in limbo while leaders have struggled to come up with the makeup of the conference committee.

Although Democrats helped passed the legislation, key Democrats, including Judiciary Committee ranking member and presumptive new chairman Patrick Leahy (D-Vt.), have made it clear that they would have written parts of the bill differently had they been in control.

It is possible that the new Senate leadership could reopen aspects of the bill. Incoming Majority Leader Tom Daschle (D-S.D.) hails from a state where Citigroup, a leading backer of the legislation, is a major employer. “Probably it all comes down to Daschle, and which faction wins him over,” said Samuel J. Gerdano, Executive Director of the ABI.