[Congressional Record (Bound Edition), Volume 150 (2004), Part 1]
[Extensions of Remarks]
[Page 970]
[From the U.S. Government Publishing Office, www.gpo.gov]




    BANKRUPTCY ABUSE PREVENTION AND CONSUMER PROTECTION ACT OF 2003

                                 ______
                                 

                               speech of

                             HON. RON KIND

                              of wisconsin

                    in the house of representatives

                      Wednesday, January 28, 2004

       The House in Committee of the Whole House on the State of 
     the Union had under consideration the bill (S. 1920) to 
     extend for 6 months the period for which chapter 12 of title 
     11 of the United States Code is reenacted:

  Mr. KIND. Mr. Speaker, our current bankruptcy system is in need of 
reform. Bankruptcy filings have risen steadily in recent years--growing 
by nearly 140% during the past four years alone. In Wisconsin, 
bankruptcy filings are up two-and-a-half times what they were just 10 
years ago.
  The costs associated with discharging bankruptcy related debt, 
calculated at over $40 billion in 2001, hurt all consumers through 
increased prices on goods and services. In fact, losses associated with 
bankruptcies alone cost the average American family around $400 per 
year.
  We need to reform our bankruptcy laws to protect those people truly 
in need of debt relief while holding accountable those who can repay 
their debt. The reforms contained in this amended legislation before us 
today accomplish this, and provide new disclosure requirements for 
lending institutions to offer better information to consumers about 
credit cards and debt. This is particularly important for young adults 
who are bombarded by credit applications and have limited knowledge 
about the risks that accompany credit card ownership.
  Further, the legislation will move child support and alimony payments 
up to the top of debt repayment priority lists. This will help prevent 
children from being unnecessarily hurt by the debt of their parents. 
The National Child Support Enforcement Association, the National 
District Attorneys Association and the Child Support Council all 
support this provision and this legislation.
  In addition, this legislation will make permanent Chapter 12 
bankruptcy provisions that provide relief to our family farmers. I have 
consistently supported temporary extensions of Chapter 12 bankruptcy 
protection because our nation's family farmers face unique 
circumstances that often pose unique financial risks outside their 
control. In Wisconsin, this situation has had the unfortunate affect of 
driving family farmers out of business at a rate of nearly five per 
day.
  The crisis in our agricultural economy is not contained to Wisconsin 
alone. In fact, the Bureau of Labor Statistics projects a 13% decline 
in farmers between 1998 and 2008. This is the largest projected decline 
of any occupational category in the U.S. economy.
  The permanent extension of Chapter 12 protections contained in this 
bill will allow family farmers facing bankruptcy to reorganize their 
debt so they do not lose their farms to creditors. Chapter 12 gives 
hope to financially-strapped farmers who feel that they have no where 
else to turn. It gives them room to recover from an economic crunch and 
still hold on to their livelihood--and it has proven to work.
  According to one study, 74 percent of family farmers who filed 
Chapter 12 bankruptcy are still farming, and 61 percent of farmers who 
went through Chapter 12 believe it was helpful in getting them back on 
their feet. This protection is critical right now, during this 
depressed economy, because many cash-strapped producers are under 
pressure to meet operating expenses and pay off bank notes. I am 
pleased the House is taking bipartisan action today to make permanent 
Chapter 12 protection for farmers, giving them the opportunity to 
reorganize their debts and preserve their farms for future generations.
  While I have objections to the majority using legislation that would 
simply extend the farm bankruptcy provisions of Chapter 12 for six 
months, as a vehicle for any other legislation, I support final passage 
of this legislation. The overall benefits of the comprehensive 
bankruptcy reform and the permanent extension of Chapter 12 now 
included will provide needed protection to consumers and relief to 
those in need. I urge my colleagues' support.

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