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Copyright 1999 The New York Times Company
The New York Times
August 20, 1999, Friday, Late Edition - Final
SECTION: Section A; Page 20; Column 6; Editorial Desk
LENGTH: 171 words
HEADLINE: Bankruptcy Abuse
BODY:
To the Editor:
As you note, the majority of people who file for bankruptcy -- low- to
middle-income working-class families -- do so to get help in managing
overwhelming financial problems (editorial, Aug. 13). But your suggestion that
our proposed legislation to
reform bankruptcy laws
"would primarily affect middle-income and poor people forced into
bankruptcy by a job loss or large medical bills" while letting the wealthy off the hook is misguided.
Our legislation is intended to assure that those who can repay a portion of
their debts do so, by establishing clear and reasonable criteria. The bill also
provides sufficient judicial discretion to insure that no one genuinely in need
of debt cancellation will be prevented from using bankruptcy to get a fresh
start. Moreover, the bill closes a loophole in Chapter 11 that is commonly used
by the wealthy to live lavishly at the expense of their creditors.
(Senator) CHARLES E. GRASSLEY
(Senator) ROBERT G. TORRICELLI
Washington, Aug. 17, 1999
http://www.nytimes.com
LOAD-DATE: August 20, 1999