Copyright 1999 Times Publishing Company
St.
Petersburg Times
November 19, 1999, Friday, 0 South Pinellas
Edition
SECTION: NATIONAL; Pg. 3A
LENGTH: 533 words
HEADLINE:
Time crunch on budget delays bankruptcy bill
BYLINE:
VANITA GOWDA
DATELINE: WASHINGTON
BODY:
Senate passage of a bill that would
significantly overhaul the nation's bankruptcy laws has been put off until next
year as lawmakers turn their focus to passing federal spending bills.
The legislation would have directed more debtors to file for bankruptcy
under Chapter 13, which requires some repayment of debt, rather than Chapter 7,
which cancels debts after the liquidation of assets. A similar version of the
bill passed the House in May. Among other things, the bill contained a
controversial provision that would override a Florida state law allowing
bankruptcy filers to shield the entire value of their primary residence from
creditors. It would also have boosted the minimum wage, currently $ 5.15, by $ 1
over the next three years.
No work was scheduled on the bankruptcy bill
Thursday, said John Czwartacki, spokesman for Sen. Majority Leader Trent Lott,
R-Miss., because "time is running out."
"These (spending) bills are the
first order of business," he said.
Congress is eager to complete
work on the budget and leave Washington. Originally, lawmakers had hoped to
adjourn Oct. 1.
Czwartacki said the Senate would most likely continue
work on the bill early next year.
But Senate Minority Leader Thomas
Daschle, D-S.D., said the Senate would have been able to finish work on the bill
this year. Telling reporters early Thursday that he was disappointed that there
would not be a final vote on the bill, Daschle indicated that Lott did not
schedule time for the legislation because of Republican opposition to two
proposed Democratic amendments to the bill. The amendments would have prohibited
people convicted of abortion-related crimes, such as abortion
clinic bombings, and some gun manufacturers from filing for certain types of
bankruptcy.
"I do think that there is a fairly
significant majority of senators" who would have voted for the bill if
given the opportunity, said Daschle.
The Senate has been debating the
bankruptcy bill on and off for more than two weeks. At one point last week, the
bill was bogged down with more than 200 amendments. The Senate made its way
through numerous amendments with a handful left as of Thursday, Daschle said.
Florida lawmakers opposed an amendment passed last week that would place
a $ 100,000 cap on the amount of home equity bankruptcy filers could shelter
from creditors. Florida is one of five states, including Texas, that allows
debtors to exempt the full value of their home when figuring their assets. As a
result, there are often cases in which debtors are able to retain lavish homes
that cannot be seized during bankruptcy filings.
Florida Democratic Sen.
Bob Graham and Texas Republican Sen. Kay Bailey Hutchison failed in an attempt
to add language to the bill that would allow states to opt out of the home
equity cap. They argued that the cap infringed on states' rights.
Supporters of the cap said that it was needed to prevent debtors from
cheating creditors by purchasing expensive homes in states such as Florida and
Texas shortly before declaring bankruptcy.
The House version of the
bankruptcy bill would place a $ 250,000 cap on home equity exemptions but would
allow states to opt out.
LOAD-DATE: November
19, 1999 
