Information about the vote from special interest groups and other information providers in our Report Cards:
Public Citizen Congress Watch
Bankruptcy: Final Passage.
The Senate passed S. 420, to amend title 11, United States Code, after taking action on the proposed amendments.
Passed.U.S. Public Interest Research Group
Consumer Protection/Oppose Weakening Consumer Bankruptcy Protections.
Despite independent research showing that most bankruptcies are the result of job layoffs, divorce, or sudden illness, the Senate passed one-sided legislation backed forcefully by the credit card industry that will restrict the ability of financially strapped consumers to make a fresh start in bankruptcy.
The bill imposes a rigid new means test on debtors seeking to file for Chapter 7 "fresh-start" bankruptcy, unfairly forcing many consumers into Chapter 13 "5-year repayment plans." The bill also creates onerous legal and paperwork burdens for debtors of modest means while continuing to allow affluent debtors in some states to file for bankruptcy protection and retain expensive homes. Furthermore, it does virtually nothing to rein in abusive creditor practices that help lead consumers into insupportable debt. The Senate approved the bankruptcy bill.
United Electrical, Radio and Machine Workers
BANKRUPTCY RULES.
The Senate voted to pass the Bankruptcy Overhaul bill (S420/HR333). This would restrict the ability of working people to declare bankruptcy, no matter what the cause. For instance, ordinary people bankrupted by medical bills would be forced onto a five-year payment plan rather than be able to free themselves of the unpayable burden. Banks and credit card companies pushed this legislation through Congress. The Senate and House will combine their different versions of the bill in 2002.
International Union, UAW
Senate Passes Anti-Worker Bankruptcy Bill.
The UAW and a coalition of consumer, women’s and labor organizations opposed a terrible bankruptcy bill that favored the interests of banks and credit card companies and made it more difficult for laid off workers to obtain financial relief under our bankruptcy laws. But the Senate approved this anti-worker bill.
Democrats.com
Bankruptcy Sellout to Credit Card Companies.
The bill's most important provision would bar many people from getting a fresh start from credit card bills and other forms of debt when they enter bankruptcy. Depending on their income, it would bar them from filing under Chapter 7 of the bankruptcy code, which forgives most debts. Under the legislation, they would have to file under Chapter 13, which would require repayment, even if that meant balancing overdue credit card bills with alimony and child- support payments. Consumer groups describe the bill as a gift to credit card companies and banks in exchange for their political largess, and they complain that the bill does nothing to stop abuses by creditors who flood the mail with solicitations for high-interest credit cards and loans, which in turn help drive many vulnerable people into bankruptcy. "This bill is the credit card industry's wish list," said Elizabeth Warren, a Harvard law professor who is a bankruptcy specialist. "They've hired every lobbying firm in Washington. They've decided that it's time to lock the doors to the bankruptcy courthouse." - From the New York Times, 3/13/01. Read the full article here.
http://www.nytimes.com/2001/03/13/politics/13LOBB.html.