“Bankruptcy reform is badly needed and long overdue,” said Rep. Jim Kolbe.  “For four years now, Congress has actively debated common sense bankruptcy reform.  It’s time for legislation to become law.”

The conference report, included as part of HR 2415, would reduce repeat bankruptcy filings, prevent “gaming” of the bankruptcy system (e.g. running up credit bills right before filing for bankruptcy), improve the administration of bankruptcy cases, and provide debtors with information about alternatives to bankruptcy, such as credit counseling services.

Highlights of the conference report include:

• “Safe harbor” provisions that will protect lower income Americans and guarantee their access to Chapter 7 bankruptcy without income qualifications.

• Protections for women and children trying to collect child support and alimony.  

• New responsibilities and disclosure requirements for lenders.

• New “homestead” laws that would prevent debtors from sheltering their assets in expensive homes while trying to discharge their debts.

Once the Senate passes the conference report, it will be sent to President Clinton for his signature.