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March, 2001

ENACT BANKRUPTCY REFORM TODAY

• Vote for the Senate bankruptcy reform bill, S. 420; oppose any weakening amendments that may be offered to it.

• Today, the U.S. economy loses $40 billion annually because of bankruptcy filings.  These losses are passed along to all consumers – including those who responsibly pay their debts – through higher interest rates, increased prices for goods and services, and reduced credit access.

• Many filers are deserving of full bankruptcy protection. However, many are not.  Responsible borrowers should not have to bear the cost of irresponsible people who can pay at least part of their debts, but choose to use the bankruptcy code to escape them.

• It is important to ensure that bankruptcy protection is available to those who truly need it.  The pending bankruptcy reform bill provides such protections, particularly for low- and moderate-income consumers.

• The House of Representatives passed bankruptcy reform on March 1, 2001, by a broad, bipartisan margin of 306-108.   Similar bankruptcy legislation enjoyed strong bipartisan support in both the Senate and the House during the last Congress.