[Congressional Record Volume 151, Number 42 (Tuesday, April 12, 2005)]
[Extensions of Remarks]
[Page E623]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           BANKRUPTCY REFORM

                                 ______
                                 

                             HON. TOM DeLAY

                                of texas

                    in the house of representatives

                        Tuesday, April 12, 2005

  Mr. DeLAY. Mr. Speaker, every year, loopholes in America's bankruptcy 
laws are abused, to the tune of tens of billions of dollars--costs that 
get passed on to consumers in higher prices and higher interest rates.
  Our bankruptcy protections, which have always been available to 
debtors as a last resort, have become just another part of financial 
planning for too many Americans.
  Over the last 15 years, bankruptcy filings have increased 150 
percent.
  In that time, our economy has grown, tens of millions of jobs have 
been created, and inflation has been held in check.
  There are always families and businesses in need of bankruptcy 
protection, but not 1.7 million of them a year, Mr. Speaker.
  Nor should drug traffickers and violent criminals be eligible for 
protection. Nor should debtors be able to use bankruptcy laws to avoid 
paying spousal and child support, which should--as this bill ensures--
be the highest priority debts. Nor should small businesses, family 
farmers, and fishermen be thrown to the wolves every time their market 
takes a temporary downturn.
  That is why the Bankruptcy Abuse Prevention and Consumer Protection 
Act of 2005 has been a critical item on the Republican economic agenda 
for so long.
  And that is why the House this week will finally pass a finished 
bill--already passed by the Senate--and send it on to the President for 
his signature.
  These loopholes need closing, and at the same time, honest American 
debtors will always need protection.
  That is why the bill we will take up--the product of years of 
development and negotiation--will include debtor protections such as 
credit counseling, financial management courses, and greater clarity in 
credit card billing statements.
  It isn't enough to punish the abusers and protect the victims; we 
must develop a credit system that helps consumers manage their debt 
before they get in too deep.
  The bankruptcy bill is another example of the far-sighted and fair-
minded reform agenda the House has been passing for a decade.
  It has been a long time coming, Mr. Speaker, but this week we will 
get the job done.

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