IN PREPARATION FOR TODAY, THE SUBCOMMITTEE HAS HELD SEVERAL HEARINGS ON CONSUMER BANKRUPTCY OVER THE LAST YEAR. MOST RECENTLY, ON MARCH 11, THE SUBCOMMITTEE EXAMINED S. 1301 IN-DEPTH. WE RECEIVED MANY SUGGESTIONS AND DIVERSE POINTS OF VIEW ON HOW TO FIX THE CONSUMER BANKRUPTCY SYSTEM. BASED ON THE INPUT THE SUBCOMMITTEE RECEIVED THROUGH THE HEARING PROCESS, I HAVE CIRCULATED A CHAIRMAN'S MARK TO MAKE SEVERAL IMPROVEMENTS IN S. 1301. BECAUSE I AM COMMITTED TO MEANINGFUL BANKRUPTCY REFORM THAT WILL BE EFFECTIVE IN THE REAL WORLD, I'VE CIRCULATED A CHAIRMAN'S MARK WHICH MAKES SOME IMPORTANT CHANGES TO MAKE THE BILL MORE WORKABLE.
THE ESSENCE OF S. 1301 REMAINS THE SAME, HOWEVER. CREDITORS ARE GIVEN THE RIGHT TO BRING EVIDENCE OF ABUSE TO A BANKRUPTCY JUDGE AND BANKRUPTCY JUDGES ARE DIRECTED TO LOOK AT A DEBTOR'S ABILITY TO REPAY HIS DEBTS. THIS WILL CLEARLY HELP CREDITORS RECEIVE MORE OF WHAT THEY'RE OWED. AT THE SAME TIME, THE CHAIRMAN'S MARK STILL CONTAINS TOUGH NEW SANCTIONS AGAINST CREDITORS WHO USE ABUSIVE COLLECTION TECHNIQUES. I THINK THAT THE CHAIRMAN'S MARK REPRESENTS A CONTINUED EFFORT TO BE FAIR AND BALANCED BY CRACKING DOWN ON ABUSES ON BOTH SIDES OF THE EQUATION.
ONE THING THAT OUR SUBCOMMITTEE HEARINGS HAVE CLEARLY SHOWN IS THAT THERE ARE STRONG FEELINGS ON THE TOPIC OF CONSUMER BANKRUPTCY REFORM. I KNOW ON THIS SUBCOMMITTEE WE HAVE A RANGE OF POINTS OF VIEW ON HOW BEST TO REFORM THE CONSUMER BANKRUPTCY SYSTEM AND WHETHER WE SHOULD REFORM THE SYSTEM. WHY DO WE HAVE SO MANY BANKRUPTCIES? SOME SAY IT'S THE FAULT OF BANKS AND CREDIT CARD COMPANIES THAT RECKLESSLY EXTEND CREDIT. OTHERS SAY IT'S DEADBEATS WHO JUST DON'T WANT TO LIVE UP TO THEIR OBLIGATIONS. I THINK THAT THE TRUTH IS PROBABLY SOMEWHERE IN THE MIDDLE. AS WITH SO MANY PROBLEMS, WE CAN'T NEATLY LAY BLAME ON JUST ONE PARTY. BUT THE BLAME-GAME DISTRACTS FROM WHAT WE SHOULD REALLY BE LOOKING AT: HOW TO REFORM THE BANKRUPTCY SYSTEM SO THAT IT WILL WORK FAIRLY FOR ALL AMERICANS.