[Congressional Record Volume 144, Number 107 (Monday, August 3, 1998)]
[Extensions of Remarks]
[Page E1516]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    H.R. 3150--BANKRUPTCY REFORM ACT

                                 ______
                                 

                           HON. DOUG BEREUTER

                              of nebraska

                    in the house of representatives

                         Friday, July 31, 1998

  Mr. BEREUTER. Mr. Speaker, with the passage of H.R. 3150--the 
Bankruptcy Reform Act of 1998, this Member encourages his colleagues to 
read the following editorial which appeared in the June 27, 1998, 
Beatrice Daily Sun. This article highlights why the House of 
Representatives passed H.R. 3150, the Bankruptcy Reform Act.

                  [From the Daily News, June 27, 1998]

  Bankruptcy Bill Deserves Support--Measure Aims To Bolster Notion of 
                  Personal Responsibility for Finances

       We find it difficult to muster much sympathy for those who 
     are criticizing recent legislation passed by the U.S. House 
     of Representatives that would make it tougher to file for 
     Chapter 7 bankruptcy.
       Some of the critics are wailing as if the measure is like 
     tossing widows into the poor house. They're arguing that 
     accumulating unpayable debts is not the fault of the debtors. 
     Rather, it was their credit cards that made them do it.
       Whatever happened to the notion of personal responsibility?
       Because the measure would only apply to persons making more 
     than $50,000 a year, it effectively counters the concern that 
     the poor and downtrodden will be negatively affected by the 
     measure.
       In effect, the measure says that if a person has enough 
     money after paying for necessities to repay 20 percent of 
     what he or she owes over five years, a court should mandate 
     that to occur.
       That seems to make a lot more sense than letting people off 
     the hook entirely, as Chapter 7 does, even when they can 
     afford to repay some of what they owe.
       From our perspective, such a measure is needed and should 
     quickly receive the support of consumer groups. After all, 
     when thousands upon thousands of people claim Chapter 7--some 
     without justification--prices for everyone else go up to 
     compensate. Either that or businesses may risk going out of 
     business. Someone is going to pay, and not just people who 
     happen to be rich.
       But some consumer groups are not supporting the House 
     measure and instead pointing the finger at credit-card 
     companies.
       It's true that some issue their cards with too little 
     checking, but it doesn't follow that it's OK to cheat those 
     companies or that people who run up debts they cannot afford 
     should not be held accountable.
       There's nothing draconian about this House measure, and it 
     would be a good idea for the Senate to pass something 
     similar, although its bill is expected to be softer. We like 
     the House bill because it aims to restore more personal 
     responsibility in people's dealings with each other. That's 
     an extremely crucial ingredient in any free and decent 
     society.

     

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