Copyright 2000 Star Tribune
Star Tribune
(Minneapolis, MN)
December 20, 2000, Wednesday, Metro Edition
SECTION: NEWS; Pg. 22A
LENGTH: 432 words
HEADLINE:
Wellstone praises Clinton veto of bipartisan bankruptcy bill
BYLINE: Kevin Diaz; Staff Writer
DATELINE: Washington, D.C.
BODY:
President Clinton vetoed a bipartisan
bankruptcy overhaul bill Tuesday, prompting praise from Sen. Paul Wellstone,
D-Minn., who called the legislation "ill-conceived, unjust and imbalanced."
The bill, making it harder for people to walk
away from their debts, had broad Senate support, but was strenuously opposed by
Wellstone, who threatened filibusters and other parliamentary tactics.
Clinton said: "I would have signed a balanced
bankruptcy reform bill that addressed known abuses without tilting the playing
field against those debtors who genuinely turn to bankruptcy for a fresh start."
He said the bill would allow debtors who own expensive houses to shield those
from creditors while debtors with moderate incomes, especially renters, must
live frugally and comply with rigid payment plans. "This
loophole for the wealthy is fundamentally unfair and must be closed," he said.
Clinton also criticized the bill's failure to
address the "abusive use" of the bankruptcy laws by activist
abortion foes "who espouse and practice violence at health care
clinics" and then use bankruptcy as a shield against liability. An early version
of the bill would have barred such use of the bankruptcy system, but that
provision was dropped in the final legislation.
Supporters of the bill, notably Sen. Charles
Grassley, R-Iowa, argued that an increase in bankruptcy filings nationwide
suggests that bankruptcy is being used as "a financial planning tool" by people
who can afford to repay their debts.
The Senate
passed the legislation Dec. 7 by a vote of 70 to 28 _ a large enough margin to
override a veto. But since Congress has adjourned, Clinton effectively killed
the bill by not signing it within the 10 days he had to act _ the fourth
indirect veto of his administration. That deadline expired at midnight Tuesday..
Wellstone praised Clinton's "pocket veto" as "a
tremendous triumph for working families." The victory was all the more sweet for
Wellstone, given the odds that he faced in Congress. Wellstone said the bill was
too harsh on single parents and children and rewarded credit card companies for
predatory lending practices.
The bill would have
provided the most sweeping changes in bankruptcy law in 20 years. Proponents
cited a rapid rise in personal bankruptcy filings in the mid-1990s, which
reached a peak of 1.4 million in 1998, as evidence that people were abusing the
current system.
.
_ The Associated Press
contributed to this report.
Kevin
Diaz can be contacted at kdiaz@mcclatchydc.com
LOAD-DATE: December 20, 2000
