Rep. Rick Boucher (D-Va.)
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'The typical American family pays a hidden tax of $550 each year because of increased charges for credit and higher prices for goods and services attributed to bankruptcies of mere convenience.
Web posted and Copyright © February 25,
1999, American Bankruptcy Institute.
Statements Made Upon the Introduction of the
"Bankruptcy Reform Act of 1999"
February 24, 1999
Congressmen*
Rep. Rick Boucher (D-Va.)
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here to email Congressman Boucher
"The typical American family pays a hidden tax of $550 each year because of
increased charges for credit and higher prices for goods and services attributed to
bankruptcies of mere convenience.
"Bankruptcies of convenience are driving this enormous increase. Bankruptcy was
never meant to be used as a financial planning tool, but it is becoming a first stop
rather than a last resort because our current bankruptcy system encourages people to walk
away from their debts regardless of whether they have the ability to repay any portion of
what they owe."
Rep. Steve Chabot (R-Ohio)
"We probably would have passed this bill in the last Congress but essentially ran
out of time."
Rep. George Gekas (R-Pa.)
"Our bill then and now provides for the fresh start that is required for the
individual and family that finds itself in financial bedlam that they have no choice by to
get a fresh start.
"With the overwhelming margin voting in favor of the bill, it could not be
anything but a bipartisan result."
Rep. Henry Hyde (R-Ill.)
"Our nation’s bankruptcy system is one of the world’s most progressive,
and we must keep it that way. ... Congress must confront the [bankruptcy] issue directly
and curb abusive and predatory practices of those who would game the system."
Rep. Sheila Jackson-Lee (D-Texas)
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here to email Congresswoman Jackson-Lee
"This is old legislation that has risen its unseemly head. ...The bill
doesn’t deal with the constant pounding of credit card opportunities and the
opportunity for debt.
"The constituents used to support this legislation last year need to really wake
up and find out if this is the way you want to go."
Rep. Bill McCollum (R-Fla.)
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here to email Congressman McCollum
"Bankruptcy will cost consumers more than $50 billion in 1998 alone. That
translates into over $550 per household in higher costs for goods, services and credit. If
we do not make reforms now, responsible borrowers and consumers will continue to pay the
prices in the form of higher costs for goods, services and credit."
Rep. Jim Moran (D-Va.)
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here to email Congressman Moran
"The current bylaws are in dire need of reform. ... No one’s rights will be
taken away; a judge will always make the final call on all of these matters.
"[Bankruptcy] should not be an easy way to pile up debts people have no interest
paying on."
Rep. Jerrold Nadler (D-N.Y.)
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here to email Congressman Nadler
"This bill would still allow credit card companies to have their debts survive
bankruptcy and force children to compete with the credit card companies for the
debtor’s post-bankruptcy income–something they do not have to do now.
"The bill uses an inflexible, one-size-fits all formula for deciding how much
families can repay, which relies on guidelines written by IRS bureaucrats for an entirely
different purpose.
"This bill is the purest case study of why we are in need of campaign finance
reform."
Rep. Pete Sessions (R-Texas)
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here to email Congressman Sessions
"Companies, banks, credit unions and other financial institutions who loan money
to people do that with the expectation that the person is going to pay back that which
they have taken. ... Reasonableness is what this bill is all about.
"The Rules Committee is aware of this bill and we’ll shepherd than on through
very quickly."
Rep. Ellen Tauscher (D-Calif.)
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here to email Congresswoman Tauscher
"There are two reasons why it is important to pass this bill: 1. It is important
to show the American people that we can work together. ... 2. It’s important to show
the American people that we can fix a law prejudiced against people who clearly want to do
the right thing."
*While not all Congressmen have email
addresses, communications can be sent to them by U.S. mail, care of
U.S. House of Representatives
Washington, DC 20515
Organizations
Coalition for Financial Responsibility
"We support this bill because it embodies the principles of fairness and personal
responsibility. No one wants to take away the option of filing for bankruptcy by those who
have suffered a serious financial crisis and need the opportunity for a fresh start. This
bill will ensure that those individuals have access to the bankruptcy system just as they
always have.
"But the bill will also ensure that higher-income filers re required to repay what
they can afford."
Consumer Federation of America, Consumers Union and National Consumer Law Center
"This version of bankruptcy reform would be disastrous for American families with
financial problems. Instead, we urge you to consider a more targeted and balanced
approach, which ends abuse by debtors and creditors, while preserving meaningful access
for those in need of bankruptcy protection."
National Bankruptcy Conference
"Re-introduction of this omnibus bankruptcy bill is especially disappointing
because it disregards the policy concerns expressed by the Administration, over 20 groups
representing the interest of women and children, civil rights groups, and consumer
advocates, along with a variety of other groups."
National Retail Federation
"[The] legislation provides complete relief for those consumers who encounter
serious financial difficulties. However, the legislation would also ensure that those who
blatantly misuse the system to wipe out debts that they can afford to pay would not be
allowed to do so."
National Women’s Law Center and National Partnership for Women & Families
"Contrary to claims by some, the child support enforcement provisions included in
the bill do not adequately protect women and children. Although in some cases they will
simplify the procedures for collecting child support during bankruptcy, they do not
address the fundamental problems created by the bill: the fewer debtors will be able to
get their finances re-ordered in bankruptcy, that more non-child support debts will
survive bankruptcy and compete with the payment of child support, and that custodial
parents forced into bankruptcy will lose protections against eviction and other coercive
practices."
U.S. Chamber of Commerce
"[T]he bill would close a number of loopholes in current law that encourages
debtors to take advantage of the system and avoid paying their debts. This legislation
provides a fair needs-based system that takes debtors’ special circumstances into
account while assuring that those who can afford to pay are required to do so.
Individuals
Philip Strauss, Assistant District Attorney
Family Support Bureau for the City and County of San Francisco
"Congress, in working with the states, has closed all loopholes [to avoid
repayment of child support] but those permitted by [the bankruptcy process]. This bill
will keep family support out of the bankruptcy system.
"This bill will drastically improve the ability of people like myself to enforce
child support obligations while people are in bankruptcy."