ACB STRONGLY SUPPORTS BANKRUPTCY
BILL
Statement by Robert R. Davis,
managing director of government relations, America's Community
Bankers, on the bankruptcy reform bill passed by the House
today:
"America's Community
Bankers strongly supports the bankruptcy reform measure passed
by the House and we will work to achieve final passage in the
Senate. This bill is a ‘win’ for consumers and a ‘win’ for
community lenders by providing appropriate protections for
those who need it, but also requiring those who can repay all
or part of their debts to do so.
"Community banks have
a long history of working with borrowers who find themselves
in dire financial straits. This legislation reinforces the
ability of lenders and borrowers to work cooperatively in
resolving financial difficulties before bankruptcy protection
is sought, as well as during the bankruptcy process. We also
applaud the bill's increased protection for women and children
by prioritizing child support and alimony payments over all
other debts in bankruptcy proceedings
"The legislation will
also hold down the cost of home mortgage loans by
once-and-for-all prohibiting federal district courts from
reducing the value of secured mortgage loans in bankruptcy
proceedings. The U.S. Supreme Court outlawed ‘cramdowns’ in
1993, but the practice
persists." |