REPUBLICANS INTRODUCE 2001 BANKRUPTCY REFORM BILLS–FAST ACTION LIKELY

February 1, 2001

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Legislation to overhaul the nation’s bankruptcy laws was introduced in the Senate and the House by Senate Finance Committee Chairman Charles Grassley (R-Iowa) on Tuesday and yesterday by Rep. George Gekas. Sen. Grassley introduced S. 220—a bill that is identical to the final conference report approved last year by the Senate and House of Representatives, but pocket-vetoed by Former President Clinton in December.

Grassley said that he looks forward to Senate action on the measure, which had veto-proof support last year. Senators voted 70-28 for the final package, and the House gave the conference report unanimous approval in December. The Bush Administration has already indicated that President Bush will sign a bankruptcy bill similar to last year’s.

Rep. George Gekas (R-Pa.) yesterday introduced H.R. 333, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2001. The measure is identical to the Grassley bill. “There are two dominant themes of the reform bill,” said Gekas in a statement. “The first and most important theme is that any person who is so overwhelmed with the inability to repay his or her financial obligations would be entitled to start anew. What this bill improves upon is forcing those who seek to abuse the system to repay at least a portion of their debt.”

If enacted, this bill would make it far more difficult for many Americans to obtain any meaningful debt relief through bankruptcy. Unfortunately, the consumer credit industry has spent over $60 Million to influence Congress, and it appears that they may be able to remake our nation’s bankruptcy laws to their liking in 2001.