CONTACTS: Linda Rozett/Eric Wohlschlegel
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Wednesday, March 19, 2003

 

U.S. Chamber Applauds House Passage of Bankruptcy Reform
Urges Quick Senate Action
 
WASHINGTON, D.C.—The United States Chamber of Commerce today applauded the U.S. House of Representatives for once again passing legislation that reforms our nation’s bankruptcy laws and requires wealthy debtors to repay their debts.

 

“Reform of our nation’s bankruptcy laws is urgently needed,” said Thomas Donohue, Chamber President and CEO.  “It is vital to our economy to bring a sense of personal responsibility back into a critically flawed system.”
 
The Bankruptcy Reform Act ends the present practice of wealthy debtors shielding assets to escape their bills, while preserves access to bankruptcy protection for legitimate filers. 

 

Today’s vote by the House requires people with the ability to pay to file under Chapter 13, where courts establish timely repayment plans, instead of Chapter 7, which erases all debts.  Current law encourages debtors to take advantage of numerous loopholes and shield their debts against repayment.

 

“People who can’t afford to pay their debts have nothing to fear from bankruptcy reform, but those who can will be held accountable,” said Donohue.  “The Senate must pass – and the President sign – a bill that will prevent wealthy debtors from abusing the system and passing the buck to American businesses and consumers.”

 

The number of bankruptcies has risen from 348,000 to 1.4 million over the last 15 years.  Businesses swallow nearly $40 billion in bankruptcy losses each year, costing the average American family about $400 a year.

 

The Chamber urges the Senate to expeditiously follow suit and refrain from adding on non-bankruptcy related issues to the bill.

 

The U.S. Chamber of Commerce is the world’s largest business federation, representing more than three million businesses and organizations of every size, sector, and region. 

 

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