[Congressional Record (Bound Edition), Volume 146 (2000), Part 1]
[Senate]
[Pages 67-68]
[From the U.S. Government Publishing Office, www.gpo.gov]



                BANKRUPTCY REFORM ACT OF 1999--Continued

  The PRESIDING OFFICER. The Senator from South Carolina is recognized.
  Mr. THURMOND. Madam President, I rise today in strong support of S. 
625, the Bankruptcy Reform Act. This legislation is urgently needed to 
address abuses of our bankruptcy laws and help make sure bankruptcy is 
reserved for those who truly need it.
  We have had Federal bankruptcy laws for 100 years, and no one 
disputes that some people must file for bankruptcy. Some people fall on 
hard times and have financial problems that dwarf their financial 
means. They need to have the debts that they cannot pay forgiven, and 
they need a fresh start.
  However, other people who file for bankruptcy have assets or have the 
ability to repay their debts over time. These people should reorganize 
their debts. Bankruptcy should not be an avenue for people to avoid 
paying their debts when they have the ability to do so. People should 
pay what they can.
  The problem is becoming more serious because more and more people are 
filing for bankruptcy every year. The number of consumer bankruptcy 
filings has more than quadrupled in the last 20 years. More Americans 
filed for bankruptcy last year than ever before.
  S. 625 addresses the issue by making it easier for judges to transfer 
cases from Chapter 7 discharge to Chapter 13 reorganization, based on 
the income of the debtor and other factors. The bill permits creditors 
to be involved if they believe the debtor has the ability to repay. 
However, if a creditor abuses that power and brings such motions 
without substantial justification, the creditor is penalized. Also, the 
legislation places more responsibility on attorneys to steer 
individuals toward paying what they can.
  The bill makes reforms without jeopardizing the truly needy. For 
example, the bill has special provisions to protect mothers who depend 
on child support by making these payments the top priority for payment 
in bankruptcy.
  It is too easy to file for bankruptcy. It is too easy to get the 
slate wiped clean. We recognize that some people need a fresh start. 
But a fresh start should not mean a free ride. We must stop this type 
of abuse.
  I urge my colleagues to support this important reform measure.
  The PRESIDING OFFICER. The Senator from Missouri.

[[Page 68]]


  Mr. BOND. Madam President, I ask unanimous consent to be permitted to 
speak for 15 minutes as in morning business.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. BOND. I thank the Chair and my colleagues.

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