Bankruptcy Reform Close to OK in Congress

Editor’s Note: As of 11:15 Eastern time this morning, the Bankruptcy Reform Bill was still being debated in the House of Representatives. Although passage is widely expected, a number of Representatives this morning spoke passionately against the bill, including Maxine Waters (D-CA) and Sheila Jackson Lee (D-TX) who said of the bill, “the American people will get stabbed in the back by this bill.” A vote on the bill is expected very soon.

Bankruptcy legislation that could make it impossible for thousands of people to wipe away their debts is nearing passage by Congress.

After eight years of failed efforts by banks and credit card companies, the biggest overhaul of bankruptcy laws in a quarter-century has been catapulted toward enactment by a Republican majority buttressed by the fall elections. The legislation, which garnered some Democratic votes, cleared the Senate last month 74-25.

The House was voting Thursday on the bill, which would require people with incomes above a certain level to pay credit-card charges, medical bills and other obligations under a court-ordered bankruptcy plan.

President Bush has said he will sign the bill into law. It marks a second victory for Bush this year on pro-business legislation.

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