Washington -- Sens. Chuck Grassley and Robert Torricelli today urged floor leaders to schedule Senate consideration before the August recess of their bi-partisan bankruptcy reform bill.

Grassley and Torricelli said that while there are a few issues which must be resolved through the amendment process, "we have worked together to reach as many compromises as possible." In fact, in a letter sent today to Majority Leader Trent Lott and Minority Leader Tom Daschle, the bill sponsors said that they helped to achieve an agreement last week between senators concerned about abusive debt collection practices against people in bankruptcy. Prominent retailers recently have plead guilty to criminal charges resulting from such conduct. The agreement reached between Sens. Jeff Sessions of Alabama and Jack Reed of Rhode Island has the support of Grassley and Torricelli, as well as the Clinton administration.

The Bankruptcy Reform Act of 1999, S.625, is intended to ensure that those individuals with the ability to repay a portion of their debt do so. The legislation would achieve this by closing loopholes in the bankruptcy code.

Last year, consumer bankruptcies escalated to an all-time high -- 1,442,549 -- jumping more than 84 percent since 1990. The vast majority of debtors -- 72.1 percent -- last year filed under Chapter 7, which effectively wipes away their debts, whereas only about one-third opted to file under Chapter 13, which requires some repayment plan to reimburse creditors. The number of personal bankruptcies filed in the United States has hit record-high levels for three years running.

Grassley and Torricelli said that their bill strikes a balanced, fair-minded approach to creditors and debtors. It takes aim at lax bankruptcy laws, lawyer-run bankruptcy mills, irresponsible consumerism, and abusive collection techniques by creditors. It also ensures a strong safety net for those who have been dealt a severe financial setback due to a lost job, a natural catastrophe, a divorce, family illness or death.

The Judiciary Committee approved the Grassley/Torricelli bill in April with a vote of 14 to four. The legislation has been co-sponsored by Sens. Joe Biden, Jeff Sessions, Bob Kerrey, William Roth, John Breaux, Jesse Helms, Chuck Robb, and Tim Johnson.

The House of Representatives passed its own consumer bankruptcy reform earlier this year. The bill sponsored by Reps. George Gekas of Pennsylvania and Rick Boucher of Virginia passed by an overwhelming margin of 313 to 108.