BANKRUPTCY REFORM ACT OF 1999--Continued -- (Senate - January 26, 2000)
 

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   The PRESIDING OFFICER. The Senator from South Carolina is recognized.

   Mr. THURMOND. Madam President, I rise today in strong support of S. 625, the Bankruptcy Reform Act. This legislation is urgently needed to address abuses of our bankruptcy laws and help make sure bankruptcy is reserved for those who truly need it.

   We have had Federal bankruptcy laws for 100 years, and no one disputes that some people must file for bankruptcy. Some people fall on hard times and have financial problems that dwarf their financial means. They need to have the debts that they cannot pay forgiven, and they need a fresh start.

   However, other people who file for bankruptcy have assets or have the ability to repay their debts over time. These people should reorganize their debts. Bankruptcy should not be an avenue for people to avoid paying their debts when they have the ability to do so. People should pay what they can.

   The problem is becoming more serious because more and more people are filing for bankruptcy every year. The number of consumer bankruptcy filings has more than quadrupled in the last 20 years. More Americans filed for bankruptcy last year than ever before.

   S. 625 addresses the issue by making it easier for judges to transfer cases 

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from Chapter 7 discharge to Chapter 13 reorganization, based on the income of the debtor and other factors. The bill permits creditors to be involved if they believe the debtor has the ability to repay. However, if a creditor abuses that power and brings such motions without substantial justification, the creditor is penalized. Also, the legislation places more responsibility on attorneys to steer individuals toward paying what they can.

   The bill makes reforms without jeopardizing the truly needy. For example, the bill has special provisions to protect mothers who depend on child support by making these payments the top priority for payment in bankruptcy.

   It is too easy to file for bankruptcy. It is too easy to get the slate wiped clean. We recognize that some people need a fresh start. But a fresh start should not mean a free ride. We must stop this type of abuse.

   I urge my colleagues to support this important reform measure.

   The PRESIDING OFFICER. The Senator from Missouri.

   Mr. BOND. Madam President, I ask unanimous consent to be permitted to speak for 15 minutes as in morning business.

   The PRESIDING OFFICER. Without objection, it is so ordered.

   Mr. BOND. I thank the Chair and my colleagues.

END