Bankruptcy Reform Beckons One MoreTime

WASHINGTON - (01/24/05) -- Lawmakers are expected to takeanother swing at bankruptcy reform at the beginning of this weekwhen Sen. Charles Grassley of Iowa introduces the latest version ofthe bill in the Senate. The start of the process in the Senate issignificant because in the previous two congresses the House passeda bankruptcy bill before the credit union-backed bill got boggeddown in the Senate. "We think it's an important sign that theSenate is going to start out first this time," CUNA's Chieflobbyist John McKechnie told The Credit Union Journal Sunday. Thebill that Grassley will introduce will be similar to the one thatpassed each of the last three congresses, except it will be withoutthe controversial abortion amendment that prevented the bill fromgetting passed the last two times, McKechnie said. The Grassleybill is expected to include the three credit union priorities: ameans-test for chapter 7 filers; mandatory financial education forbankruptcy filers; and the continued ability for debtors toreaffirm, or voluntarily repay some, of their debts.