    [Public Papers of the Presidents of the United States: WILLIAM J. CLINTON (2000, Book I)]
    [June 9, 2000]
    [Pages 1114-1115]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Letter to Congressional Leaders on Bankruptcy Reform Legislation
    June 9, 2000

    Dear Mr. Speaker:  (Dear Mr. Leader:)
        I write to urge a fair resolution of the open issues in discussions
    on bankruptcy reform. I have long made clear my support for legislation
    that would encourage responsibility and reduce abuses of the bankruptcy
    system on the part of debtors and creditors alike. We also must ensure
    that a reasonable fresh start is available for those who turn to
    bankruptcy as a last resort when facing divorce, unemployment, illness,
    and uninsured medical expenses. Bankruptcy reform legislation should
    strike the right balance.
        The House-passed bill was so one-sided that I would have vetoed it.
    The Senate-passed bill's bankruptcy provisions represented a better
    attempt to balance legitimate debtor and creditor interests, although I
    had serious concerns about some aspects. My Administration has watched
    carefully as the staff and informal conferees have sought to reconcile
    these two bills. While there appears to be some informal progress on
    some outstanding issues, it is very important that the resolution of
    these issues be fair and that we ensure that we do not erode protections
    for all debtors--when targeting the few who abuse the system. The
    outcome will help determine whether the final bill tips the scales. I am
    concerned, for example, that the final bill:
        may not adequately address the problem of wealthy debtors
                who use overly broad homestead exemptions to shield assets
                from their creditors;
        may weaken important credit card disclosure provisions that
                will help ensure consumers understand the implications of
                the debt they are incurring;
        may eliminate protections for reasonable retirement pensions
                that reflect years of contributions by workers and their
                employers; and
        may include an anti-consumer provision eliminating existing
                law protections against inappropriate collection practices
                when collecting from people who bounce a check.
        Finally, I am deeply disturbed that some in Congress still object to
    a reasonable provision that would end demonstrated abuse of the
    bankruptcy system. We cannot tolerate abusive bankruptcy filings to
    avoid the legal consequences of violence, vandalism, and harassment used
    to deny access to legal health services. An effective approach, such as
    the one offered by Senator Schumer's
    amendment, should be included in the final legislation.
        I sincerely hope that balanced, bipartisan bankruptcy reform will be
    completed this year,

    [[Page 1115]]

    but I will not hesitate to veto unfair legislation that fails the test
    of balance.
             Sincerely,

                                                          William J. Clinton

     Note: Letters were sent to J. Dennis Hastert, Speaker of the House of
    Representatives; Richard A. Gephardt, House minority leader; Trent Lott,
    Senate majority leader; and Thomas A. Daschle, Senate minority leader.
    An original was not available for verification of the content of this
    letter.