January 31, 2000

The Honorable Trent Lott
Senate Majority Leader
United States Senate
S-230 U. S. Capitol Building
Washington, DC 20510-7010

Dear Majority Leader Lott:

America’s Community Bankers (ACB) supports final passage of S. 625, the Bankruptcy Reform Act of 1999. S. 625 will 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. It eliminates the practice of reducing the secured value of residential real estate mortgages by permitting lenders to retain first liens in bankruptcy.

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

S. 625 provides critical reform of our existing, ineffective bankruptcy system. Accordingly, we strongly urge you to support this vital bankruptcy reform measure.

America’s Community Bankers represents the nation’s community banks of all charter types and sizes. Our members pursue progressive, entrepreneurial and service-oriented strategies in providing financial services to benefit their customers and communities.

Sincerely,

Robert R. Davis
Director of Government Relations