Identical Letter Sent to All United States Senators

May 18, 1999

The Honorable Trent Lott
Senate Majority Leader
United States Senate
S-230 Capitol Building
Washington, DC 20510-7000

Dear Majority Leader Lott:

America’s Community Bankers urges you to support S. 625, The Bankruptcy Reform Act of 1999. As you are aware, despite strong economic growth, low unemployment and rising personal income, personal bankruptcies continue to increase. Last year, the total number of bankruptcy filings reached 1.42 million. This escalating trend is continuing in 1999.

Accordingly, it is imperative that Congress pass legislation that will encourage a reduction in the number of bankruptcy filings by reducing the incentive to file. S. 625 achieves this objective in a fair and balanced manner. It provides for a needs-based bankruptcy system that requires debtors who have the ability to repay all, or a portion of their debt obligations to do so, while providing further debt relief for those in need.

Furthermore, S. 625 provides for increased protection for women and children in bankruptcy proceedings. Under the provisions of S. 625, child support and alimony take priority over all other debts in bankruptcy. Therefore, it is easier for single mothers to collect child-support payments from fathers who attempt to abrogate these obligations by filing bankruptcy. This legislation, therefore, warrants your careful consideration and full support.

S. 625 is a prudent vehicle for responsible bankruptcy reform and ACB respectfully requests that you vote for this legislation when it reaches the Senate floor.

Sincerely,

Robert R. Davis
Director of Government Relations