The Senate Judiciary Committee voted 12 to 5 yesterday to approve legislation backed by the credit card industry and opposed by consumer groups that would make it harder for consumers to wipe out debt through bankruptcy.
The bill, which would be the most significant change in bankruptcy law in more than a quarter of a century if adopted, now goes to the full Senate. Senate Majority Leader Bill Frist (R-Tenn.) has said debate could begin within 10 days. Republicans and many Democrats believe the bill eventually will pass — its chief sponsor, Sen. Charles E. Grassley (R-Iowa), yesterday predicted a final vote of 80 to 20 in its favor — but only after a drawn-out and heated discussion on the Senate floor.
Senate Democrats who oppose the bill plan to propose dozens of amendments to change or at least stall it, including a controversial provision sponsored by Sen. Charles E. Schumer (D-N.Y.) that would bar individuals from using bankruptcy to avoid paying court-imposed fines for unlawful protests against abortion.
Bankruptcy legislation has been a top priority for the credit card industry for more than seven years, and twice in that time bankruptcy bills have passed both the House and Senate but never made it into law.
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