Bankruptcy Reform Returns

WASHINGTON - (02/03/05) -- Sen. Charles Grassley of IowaWednesday introduced a new bankruptcy reform bill that looks verymuch like the old one supported by credit unions. The billintroduced by Grassley, a champion of the long-sought reformeffort, includes the main credit union priorities, including ameans-test for chapter 7 filings to erase debt; mandatory financialeducation for bankruptcy filers; and the continued ability forcredit unions and other debtors to enter into reaffirmation, orvoluntary repayment, agreements with debtors. John McKechnie, chieflobbyist for CUNA, said he hopes the start of the legislativeprocess in the Senate is a signal the upper chamber is focused onresolving the stalemate over the abortion clinic protesters, whichstymied the initiative in each of the last two congresses. "What isclear is they're going to work with Senator (Charles) Schumer andensue that he has his day in the sun," McKechnie told The CreditUnion Journal Wednesday. He was referring to the New YorkDemocrat's amendment to bar abortion clinic protesters fromprotecting their assets under bankruptcy laws. "Credit unions havebeen waiting long enough for this," said McKechnie, of the fourtimes the bill has been debated in the Congress, only to come upshort.