LEGISLATIVE UPDATES

9/7/00

Bankruptcy Reform Proposal Faces Presidential Veto

According to reports from the White House, President Clinton has indicated he will not support the recent proposal for bankruptcy reform and that he is still willing to veto the legislation.

The three provisions contained in the recently submitted Republican proposal creating controversy are:

• The bills retaining Senate Judiciary Committee Chairman Hatch's (R-Utah) FDCPA amendment regarding checks;
• Eliminating Representative Schumer's (D-NY) amendment making nondischargeable debts related to abortion clinics violence; and
• Adding a rent-to-own provision offered by Representative Armey (R-TX).

Some Democrat staff feel as though the Republican offer was "written to be rejected" since it ignores a compromise reportedly brokered just prior to the August recess. That compromise between Republicans in the White House had the removal of Hatch's amendment, a homestead cap of $500,000 with an "interest of justice exception" (giving a court discretion), retention of Schumer's amendment and inclusion of an amendment by House Judiciary Committee Chairman Hyde (R-IL) creating a safe harbor for low income filers shielding them from motions by trustees.

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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.