"S. 625 provides critical reform for our existing, ineffective bankruptcy system," said Robert R. Davis, ACB's director of government relations. "Accordingly, we strongly urge you to support this vital bankruptcy reform measure."

Davis said the bill would establish a needs-based bankruptcy system that would require debtors who have the ability to repay all, or a portion, of their debts to do so, while preserving bankruptcy protection for those who truly need it.

Davis added that the bill would eliminate the practice of reducing the secured value of residential real estate mortgages by permitting lenders to retain first liens in bankruptcy.

Davis said S. 625 would provide increased protection for women and children by prioritizing child support and alimony payments over all other debts in bankruptcy proceedings. "As a result, many single parents will find it easier to collect child support payments from those who attempt to abrogate their obligations by filing bankruptcy petitions," he said.

A copy of the letter is linked.