SENATE MAY INTRODUCE BANKRUPTCY REFORM LEGISLATION TODAY OR TOMORROW

January 25, 2005

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Consumers have a lot to worry about, now that the Republicans have control of the U.S. Congress. The U.S. Bankruptcy Laws could be changed, to make it much more difficult to file bankruptcy Chapter 7 (complete discharge) and also much more onerous (less allowances for living expenses, etc.) for Chapter 13.

PLEASE call your U.S. Representative, or U.S. Senator, or send them an email, or do SOMETHING to tell them that (a) you are a voter (one of their “constituents”); and (b) the bankruptcy laws are STRICT ENOUGH, and that they need to stop restricting the rights of their constituents to help them and (c) stop helping the richest Americans to continue to become richer, at the expense of the poorest.

The Senate this week is expected to introduce Credit Union National Association (CUNA) backed legislation passed by the House last year that would “reform” bankruptcy laws in the U.S.

Sen. Charles Grassley (R-Iowa) is expected to introduce the bill today or tomorrow, according to CUNA Senior Vice President of Governmental Affairs John McKechnie.

Mr. McKechnie indicated that it would be similar to a bill passed by the House last year, except it would not include the controversial Sen. Charles Schumer (D-N.Y.) amendment on abortion clinic violence. CUNA strongly supports the passage of a bankruptcy abuse reform bill.

But according to informed sources the House has decided NOT to introduce the bill until the Senate takes action, waiting to see if the bill will pass without the Schumar (abortion clinic) amendment.

The Senate leadership is planning to take action on the bill in early February with hopes of passage before the February Presidents’ Day recess Feb. 21-25.