**News - Bankrutpcy Reform Bill - possible action **

[LadynRed]

Heads-up everybody !!

SENATE MAY INTRODUCE BK REFORM LEGISLATION TODAY OR TOMORROW

The Senate this week is expected to introduce Credit Union National Association (CUNA) backed legislation passed by the House last year that would reform bankruptcy laws in the U.S. Sen. Charles Grassley (R-Iowa) is expected to introduce the bill today or tomorrow, according to CUNA Senior Vice President of Governmental Affairs John McKechnie.

Mr. McKechnie indicated that it would be similar to a bill passed by the House last year, except it would not include the controversial Sen. Charles Schumer (D-N.Y.) amendment on abortion clinic violence. CUNA strongly supports the passage of a bankruptcy abuse reform bill.

But according to informed sources the House has decided NOT to introduce the bill until the Senate takes action, waiting to see if the bill will pass without the Schumar (abortion clinic) amendment.

The Senate leadership is planning to take action on the bill in early February with hopes of passage before the February Presidents' Day recess Feb. 21-25.

Informed sources opine that the Senate is unlikely to act on the legislation in a hurry, but indicate that it is URGENT that any consumer bankruptcy attorney able to help contact NACBA, a major organization orchestrating opposition to the bill. See NACBA.com.

sources:

David Goch

Washington Legislative Counsel

Commercial Law League of America

[Wilco]

Thank you for posting this. If I head to BK court, it won't be for several more months. I guess I need to cross my fingers and hope that the law does not change before then.

[DocDon]

I'm sorry, but bankruptcy abuse? Doesn't the Trustee review the information submitted, and creditors have a chance to appeal? What is this "abuse" they're talking about?

Notice they snuck in an "amendment on abortion clinic violence". That has a lot to do with BK. No wonder nothing gets done.

[DocDon]

This directly from CUNA:

Bankruptcy reform off to fast start

WASHINGTON (1/26/05)--The Senate this week could introduce CUNA-backed legislation passed by the House last year that would reform bankruptcy laws in the U.S.

Sen. Charles Grassley (R-Iowa) is expected to introduce the bill today or tomorrow, according to CUNA Senior Vice President of Governmental Affairs John McKechnie. He indicated that it would be similar to a bill passed by the House last year, except it would not include the controversial Sen. Charles Schumer (D-N.Y.) amendment on abortion clinic violence.

CUNA strongly supports the passage of a bankruptcy abuse reform bill. CUNA's top three priorities in bankruptcy abuse reform legislation are:

Protecting the ability of credit union members to voluntarily reaffirm their debts with their credit unions;

Inclusion of a meaningful "means test;" and

Inclusion of mandatory financial education provisions.

At the same time, CUNA recognizes that bankruptcy is a legitimate way for many who truly need an extraordinary means to address their indebtedness, according to McKechnie. He said the fact that the Senate rather than the House is moving first is reason for optimism. "In the past several years, the House has taken the lead and done the work to keep the bill moving forward," he said. "This year we are seeing a newfound interest on the part of the Senate to take the initiative." The activity in the Senate was not unexpected. CUNA lobbyists had heard from Hill sources in November that negotiations between House and Senate proponents of the legislation had resulted in a decision to let the Senate proceed first.

[bingo]

The reason they went to the Senate first was to see if Sen. Schumer is serious about attaching the abortion legislation to the bk bill again. Put another way, the House is tired of wasting time and getting nowhere. They're telling the Senate to step up and show you can pass it before we get involved again.

[LadynRed]

Well, if this looks like it has any hope of passing this time, I WILL be filing before it goes into effect. If it goes thru, watch for a huge surge in BK filings !!

I don't need 'financial education'.. I didn't shop my way into this debt ! I lost my house because of a layoff and the last layoff in 2002 left the rest of my credit shot to hell. I did have credit that I used.. yes.. but I didn't stop paying by choice !

They all think people who file for BK are just a bunch of stupid deadbeats who can't handle money.. and that's where its SO WRONG !

[DocDon]

I agree. In looking at the paperwork to file, there's no way to scam your way into a BK. I wonder if they've actually read the paperwork required to file.

Yeh, right. What am I thinking?

[LadynRed]

The ONLY thing these 'legislators' are reading is the amount of money on the checks flowing into their coffers by the likes of CUNA, MBNA, and lots of other whining banks who would give credit to your dog 10 years ago !!

What galls me is this from CUNA:

Protecting the ability of credit union members to voluntarily reaffirm their debts with their credit unions;

That is SO much bull !! EVERYONE has the 'ability' to reaffirm a debt, it is VOLUNTARY, no one is stopping them ! In some cases a judge will disallow a reaff if they think it will be more detrimental to their 'fresh start'.

What CUNA is REALLY saying is they want to be able to force people to reaffirm.. and they already do that with their damn sneaky cross-collateralization clauses !

[nolo]

The ONLY thing these 'legislators' are reading is the amount of money on the checks flowing into their coffers by the likes of CUNA, MBNA, and lots of other whining banks who would give credit to your dog 10 years ago !!

Hmmm.............thanks for reminding me LadynRed. Does anybody know how long a canine BK stays on my dogs CBR?

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Oh yeah, she's a boxer located in New Mexico. (hope this helps)

[ghacorp]

Actually bk reform began a couple of years ago when then AG Ashcroft ordered the district courts to scrutinize Chapter 7 filers. It's actually been a very good measure in the more lenient districts such as in Florida and Texas. The worst that's come out of it thus far is that some folks have had to convert to a 13 and repay a percentage of their obligation. The new reform measure will have much the same effect except that it is highly unlikely President Bush will sign the bill unless TX retains unlimited homestead exemption. Therefore, don't lose any sleep over bk reform because legislators have been kicking this around for over a decade and can never seem to agree on everything. Also, if it did pass, it would be at least six months for the measures to take effect and in some northeastern states it would have little effect anyway. It's largely true that most bk filers really do need bk protections.

[nolo]

I've been wondering about a few things where this new BK reform is concerned.

Under the current rules, a chapter 13 BK can be filed at any time. So, one filing can be dropped or dismissed and a new Chapter 13 BK can then filed. ALSO, a Chapter 13 can be converted to a Chapter 7 (under the correct circumstances).

What happens if a person files a chapter 13 under the OLD rules and then needs to drop it OR has it dismissed and then tries to file a new Chapter 13 OR convert to a Chapter 7 (after the NEW rules have taken affect). Which rules apply to the new Chapter 13/Chapter 7 conversion ?

[LadynRed]

I would *think* that it would hinge on the filing date no matter what. If the BK was FILED under the 'old' rules, then any conversion is NOT a new case and should be covered under the same 'old' rules.