10/13/00
Bankruptcy Reform Act of 2000
In summary, the House yesterday approved by voice vote H.R. 2415, the new number for the Bankruptcy Reform Act of 2000 (that bill references S. 3186, which provides the actual text of the bankruptcy reform bill, introduced by Sen. Grassley (R-Iowa) on the 11th). The next step will be Senate consideration which is expected to include a filibuster, followed by a motion for cloture to kill the filibuster, and forced vote. The new bill has received threats of the veto from the President. The letter stated that, "Over the last few months, the Administration has engaged in a good faith effort to reach agreement on a number of outstanding issues in the bankruptcy legislation...the President [has] deep concern that the bill fails to concern some creditor abuses and disadvantages all debtors to an extent unnecessary to stem abuses by a few."
The bill is purported to be all bankruptcy, the Schumer (D-NY)
amendment on the nondischargeability of debt as a result of abortion clinic violence has been stripped out, Senator Hatch's (R-Utah) FDCPA check is not a debt provision has been taken out, and Majority Leader Armey's (R-TX) rent-to-own provision has been taken out. However, it is reported that the bill contains at least 20 tax-related changes (contained in Title VII of the bill), ranging from the tax treatment of certain kinds of liens and state and local taxes owed, to interest rates on taxes owed. Senate Minority Leader Daschle (D-SD) has referred to the bankruptcy reform process as, "an abomination" indicated he expects Senator Wellstone (D-MN) to filibuster and that time will run out. (Either time for the Senate to consider it or, if the Senate does pass it, time to override the anticipated Presidential veto).*************
TMA is committed to providing the most recent legislative actions affecting the corporate renewal industry. The following updates are provided by TMA's Legislative Consultant, David P. Goch, of Webster, Chamberlain & Bean in Washington, DC. Please contact David at dgoch@wc-b.com or (202) 785-9500 for more information or specific questions about the legislative information provided below.