Senate Passes Bankruptcy Bill,Again

Register now

WASHINGTON - (03/11/05) -- The Senate ended a week-and-a-halfof debate on the bankruptcy reform bill and voted last night topass the credit union-backed measure, for a fourth time. Expectthis time backers of the bill hope the Senate-passed version of thebill will be quickly adopted by the House and sent on to PresidentBush, who has vowed to sign it into law. "We feel confident thatthat is going to follow," John McKechnie, chief lobbyist, told TheCredit Union Journal last night. The Senate bill, was devoid of anymajor amendments that would give the House pause, he said. Thebill, which died in each of the past four congresses, would createa means test to determine which debtors have enough financial meansto repay some of their debts, preventing them from filing a Chapter7 to erase their obligations, and relegating them to a Chapter 13financial reorganization, instead. The bill would also requirefinancial counseling for all bankruptcy filers and allow creditunions and other to continue to enter into reaffirmation, orvoluntary repayment, agreements on selected debts during thebankruptcy process.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER