[Congressional Record (Bound Edition), Volume 151 (2005), Part 15]
[Extensions of Remarks]
[Page 19953]
[From the U.S. Government Publishing Office, www.gpo.gov]




 STATEMENT OF INTRODUCTION OF THE HURRICANE KATRINA BANKRUPTCY RELIEF 
                  AND COMMUNITY PROTECTION ACT OF 2005

                                 ______
                                 

                         HON. JOHN CONYERS, JR.

                              of michigan

                    in the house of representatives

                      Thursday, September 8, 2005

  Mr. CONYERS. Mr. Speaker, today Rep. Mel Watt, Rep. Jerrold Nadler, 
Rep. Sheila Jackson-Lee and twenty four additional original co-sponsors 
have joined me in introducing the ``Hurricane Katrina Bankruptcy Relief 
and Community Protection Act of 2005'', to protect the thousands of 
families and small businesses financially devastated by Hurricane 
Katrina from being penalized by anti-debtor provisions contained in a 
new bankruptcy law scheduled to take effect on October 17, 2005.
  We are concerned that, just as survivors of Hurricane Katrina are 
beginning to rebuild their lives, the new bankruptcy law, effective 
October 17, 2005, will result in a further and unintended financial 
whammy.
  Unfortunately, the new bankruptcy law will have the consequence of 
preventing thousands of devastated families from being able to obtain 
relief from the massive and unexpected financial obligations they are 
incurring. The inflexible bankruptcy law will force victims of 
Hurricane Katrina to repay debt with income they no longer have, file 
paper work with documents that no longer exist, and travel to courts 
that are possibly hundreds of miles away. It is simply absurd to place 
these obstacles between survivors and financial security.
  When the Judiciary Committee considered the Bankruptcy Abuse and 
Consumer Protection Act earlier this year, Ms. Jackson-Lee offered an 
amendment to protect the victims of natural disaster like those now 
devastated by Hurricane Katrina. While the amendment was defeated on a 
party line vote without any debate, we hope that in light of recent 
events our colleagues will recognize the importance of protecting our 
most financially vulnerable Americans.
  This bill will prevent new bankruptcy provisions from having adverse 
and unintended consequences for the hundreds of thousands now facing 
financial catastrophe by providing needed flexibility for victims of 
natural disasters in bankruptcy proceedings.
  This common sense bill will insure that we do not compound a natural 
disaster with a man made financial disaster. I hope there will be 
bipartisan support for expedited consideration of this critical 
legislation.

                          ____________________