[Congressional Record Volume 149, Number 170 (Friday, November 21, 2003)]
[Extensions of Remarks]
[Pages E2366-E2367]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  CHAPTER 12 BANKRUPTCY EXTENSION BILL

                                 ______
                                 

                           HON. TAMMY BALDWIN

                              of wisconsin

                    in the house of representatives

                      Thursday, November 20, 2003

  Ms. BALDWIN. Mr. Speaker, today I am once again introducing 
legislation to extend authorization of Chapter 12 of the bankruptcy 
code. This legislation should not be necessary, but a permanent Chapter 
12 authorization remains a hostage to more comprehensive bankruptcy law 
changes.
  Chapter 12 provides an important backstop for our Nation's struggling 
family farmers by allowing them to reorganize their debts and keep 
their farms. It provides an important bankruptcy option to farm 
families to keep their livelihood and maintain their way of life.
  This bill provides a textbook example that what we do here in 
Washington directly affects the lives of real people facing real 
financial challenges.
  In Wisconsin recently, a Columbus farmer filed for Chapter 12 
bankruptcy. He works

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night and day to make his farm a success. Unfortunately, like many 
farmers, the weather and the market conspired to disrupt his cash flow. 
Filing Chapter 12 gave his family time to negotiate with his creditors, 
while he switched production from corn and soybeans to vegetable 
production and local market sales. He sells his produce at farmers 
markets in Madison and Princeton. And he is paying his debts. Under 
Chapter 12, it was not only the Columbus farmer that benefited. His 
creditors are receiving their money, the people in my district can 
purchase his bounty, and he can continue to support his family.
  Chapter 12 does not just provide a direct benefit to those using its 
protections. Many farmers who face possible bankruptcy never get to a 
court filing. The very existence of the option of a Chapter 12 filing 
promotes negotiations between farmers and creditors.
  Chapter 12 bankruptcy protection expires at the end of 2003. Before 
we leave town for the year, Congress should renew this bankruptcy law. 
That is why I am introducing this bipartisan bill today. I am pleased 
to be joined by my colleagues Nick Smith of Michigan and Tim Holden of 
Pennsylvania.
  Once again, we are forced to approve a temporary extension of this 
vital protection. Since I was first elected to Congress 5 years ago, we 
have passed 8 temporary extensions. Making this noncontroversial 
program permanent is beyond overdue. In both this Congress and last 
Congress, I introduced legislation to modify Chapter 12 to include more 
family farmers and make it a permanent part of our bankruptcy law.
  There is great consensus that Chapter 12 bankruptcy protection works 
well. It is for that reason that we have included a permanent 
authorization in the comprehensive bankruptcy reform bill for the past 
three Congresses. In fact, it is considered so popular that it has been 
held hostage to the bigger bill. Every time we come to the floor to 
extend Chapter 12, we are told that a permanent extension cannot be 
passed separately from the big bill because taking out popular items 
will slow the bill's momentum. We were told we had to strip the 
permanent extension from last year's farm bill because it would slow 
down the bankruptcy bill. We were told in June when we extended Chapter 
12 again that we had to wait. Our farmers have been waiting for more 
than 5 years. It is time to just get this done. Let's end the 
uncertainty these extensions cause by passing a permanent 
authorization.
  In reluctant acknowledgment that passage of the permanent Chapter 12 
legislation is unlikely this year, I am introducing this 6-month 
extension. In the absence of a permanent authorization, I would prefer 
even longer than 6 months. This legislation is a realistic time period 
that can ensure passage in the few days we have left in this session.
  Since the current authorization will expire at the end of the year, 
farmers will need the relief provided by this extension. As our family 
farmers begin to decide whether they can afford to plant next year, we 
need to make sure they have the ability to stay in farming by using 
Chapter 12 to reorganize their debts. This bill will provide the 
security family farmers to make that difficult decision.
  Mr. Speaker, I hope that you and the chairman of the Judiciary 
Committee move this bill before we adjourn for the year. Chapter 12 has 
expired before, leaving many farmers in great uncertainty. Let's not 
let that happen again.

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