Official Statement from Bankruptcy Coalition
We are very pleased that the House Judiciary Committee today favorably reported The Bankruptcy Reform Act of 1998, clearing the measure for action by the full House. We also applaud Chairman Hyde and the Committee members for putting to rest any questions about the priority status of child support and alimony payments in the bankruptcy process. The amendments adopted by the Committee specifically and categorically state that child support and alimony payments must be given priority in bankruptcy proceedings. There is no greater personal responsibility than meeting one’s child support and alimony obligations, and we strongly support these measures to ensure that these payments are in no way affected by this legislation.
The result is that H.R. 3150 has emerged from the Committee even stronger in terms of personal responsibility and should enjoy strong bipartisan support on the House floor. We urge the full House to act upon this legislation at the earliest opportunity so that sensible, fair bankruptcy reform can be enacted in 1998. We are also pleased that the Senate plans to move forward next week on significant bankruptcy reform legislation.
H.R. 3150 will restore personal responsibility and fairness to our bankruptcy system. For too long now, our flawed bankruptcy law has provided complete debt relief to individuals who have enough income to repay at least some of what they owe. As a result, the overwhelming majority of Americans who pay their bills on time have been forced to pick up the tab – to the tune of about $400 per household – for those who walk away from their debts. This important legislation will correct this flaw by ensuring that bankruptcy filers receive only the amount of debt relief they need, no more, no less.
American Finacial Services Association
America’s Community Bankers
Bankruptcy Issues Council
Consumer Bankers Association
National Retail Federation
U.S. Chamber of CommerceDetails