U.S. House of Representatives, Pennsylvania District 17

George W. Gekas

News Release

April 28, 1999 

BANKRUPTCY REFORM ACT OF 1999 REPORTED OUT OF HOUSE JUDICIARY COMMITTEE

Floor Action Expected Next Week

WASHINGTON, D.C. – Representative George W. Gekas (R-PA) thanked the House Judiciary Committee for their efforts on Bankruptcy Reform today as the Committee voted 22-13, with one member voting present, to report H.R. 833 to the House. The bill is expected to come to the floor for a vote early next week.

"I thank my colleagues on the Judiciary Committee for their perseverance and their commitment to bankruptcy reform during what has been an arduous process," said Gekas. "I am proud of what we have accomplished with this bill, which I believe will institute meaningful reform where it is desperately needed."

Bankruptcy filings have risen by over 300% since 1980, with significantly more filings in the last 3 years. More people filed for bankruptcy in this country last year than graduated from college. "The good health of our nation’s economy makes it especially perplexing that so many have filed for bankruptcy in recent years," said Gekas. "This legislation simply requires that individuals filing for bankruptcy who are capable of repaying even a portion of their debts do so."

The bill institutes a needs based system, under which debtors who are found to have repayment capacity are steered towards Chapter 13 repayment plans. All cases are reviewed by a judge. The 1.33 million bankruptcy filings in 1997 erased an estimated $40 billion in consumer debt. Those losses are passed on to all consumers, resulting in a hidden tax of $400 for every American household.

H.R. 833 is similar to the conference report H.R. 3150, which passed the House with 300 votes, including one third of the Democrat Caucus, last fall. The bill has 104 co-sponsors, 38 of whom are Democrats.

-30-