S.420, the bankruptcy reform bill


Sen. Chuck Grassley issued the following comment regarding Senate action this afternoon to move to final passage on the Bankruptcy Reform Act of 2001. Sen. Grassley is the lead sponsor of this legislation to overhaul the nation's bankruptcy system. Last December, the Senate voted 70 to 28 for the conference report on his proposal. Sen. Grassley reintroduced the legislation in the new Congress in January.

"The 80 to 19 vote this afternoon is a sign of growing bipartisan support for reforming the bankruptcy system and closing the loopholes used by some people to get out of debts they can afford to repay. There's plenty of blame to go around for the 100 percent increase in the number of bankruptcy filings in the last ten years. Part of the problem is bankruptcy laws that are too lax. This bill strikes the right balance between debtors and creditors. Fewer bankruptcies would be good for consumers and families. Bankruptcies increase costs for consumers and put upward pressure on interest rates."