February 24, 1999

The Honorable George Gekas
Chairman
Subcommittee on Commercial and Administrative Law
House Committee on Judiciary
2410 Rayburn House Office Building
Washington, DC 20515-3817

Dear Chairman Gekas:

On behalf of America’s Community Bankers, which represents the nation’s progressive community banks, I want to thank you for introducing the Bankruptcy Reform Act of 1999.

America’s Community Bankers strongly supports the bill’s needs-based bankruptcy system that distinguishes between debtors who have virtually no assets or earning power and debtors with the ability to repay all or a portion of their indebtedness. ACB, in addition, enthusiastically supports the codification of the anti-cramdown provisions contained in the legislation that prevents inappropriate reduction in the value of secured residential real liens.

Further, this legislation is significant because it affords a long-overdue priority to child support and alimony payments in bankruptcy. The Bankruptcy Reform Act of 1999 elevates child support and alimony obligations from seventh priority to first priority. The new legislation, therefore, clearly enhances these vital family support mechanisms that sustain a significant number of American families.

The Bankruptcy Act of 1999 is essential legislation that warrants immediate enactment. ACB will work with you and other members of Congress to ensure its passage.

Sincerely,

Robert R. Davis
Director of Government Relations