    [Public Papers of the Presidents of the United States: George W. Bush (2005, Book I)]
    [April 20, 2005]
    [Pages 639-640]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Remarks on Signing the Bankruptcy Abuse Prevention and Consumer
    Protection Act of 2005
    April 20, 2005

        Thank you all. Please be seated. Welcome. Thank you very much for
    coming today. Today we take an important action to strengthen--to
    continue strengthening our Nation's economy. The bipartisan bill I'm
    about to sign makes commonsense reforms to our bankruptcy laws. By
    restoring integrity to the bankruptcy process, this law will make our
    financial system stronger and better. By making the system fairer for
    creditors and debtors, we will ensure that more Americans can get access
    to affordable credit.
        I'm pleased to be joined today by the Attorney General Al
    Gonzales. I want to thank the bill
    sponsors in the House and the Senate. Senator Chuck Grassley of the Senate--I think you told me you'd been
    working on this bill for 9 years. That's a long time. [Laughter] I
    appreciate Congressman Jim Sensenbrenner from the House for being the sponsor in the House. Thank
    you.
        I want to thank the Speaker.
    Yesterday, the Speaker and I, by the way, had the honor of opening the
    Lincoln Library in Springfield, Illinois. I know he'd be pleased to hear
    me say, ``If you're looking for something to do this summer''--
    [laughter].
        I thank Senator Mitch McConnell, Senator Orrin Hatch,
    Senator Jeff Sessions, and
    Senator Tom Carper. I appreciate the
    Members of the House who are here, Mike Oxley, Rick Boucher,
    Bob Goodlatte, Steve Chabot. Thank you all for coming, and thanks for working on
    this piece of legislation.
        Our bankruptcy laws are an important part of the safety net of
    America. They give those who cannot pay their debts a fresh start. Yet
    bankruptcy should always be a last resort in our legal system. If
    someone does not pay his or her debts, the rest of society ends up
    paying them. In recent years, too many people have abused the bankruptcy
    laws. They've walked away from debts even when they had the ability to
    repay them. This has made credit less affordable and less accessible,
    especially for low-income workers who already face financial obstacles.
        The bill I sign today helps address this problem. Under the new law,
    Americans who have the ability to pay will be required to pay back at
    least a portion of their debts. Those who fall behind their State's
    median income will not be required to pay back their debts. This
    practical reform will help ensure that debtors make a good-faith effort
    to repay as much as they can afford. This new law will help make credit
    more affordable, because when bankruptcy is less common, credit can be
    extended to more people at better rates.
        The new law will also require credit card companies to let card
    holders know up front what they are expected to pay and what the
    penalties they will face if they are late on a payment. When people get
    a credit card, they should not be trapped by a provision in the fine
    print.
        To make the system more fair, the new law will also make it more
    difficult for serial filers to abuse the most generous bankruptcy
    protections. Debtors seeking to

    [[Page 640]]

    erase all debts will now have to wait 8 years from their last bankruptcy
    before they can file again. The law will also allow us to clamp down on
    bankruptcy mills that make their money by advising abusers on how to
    game the system.
        America is a nation of personal responsibility, where people are
    expected to meet their obligations. We're also a nation of fairness and
    compassion where those who need it most are afforded a fresh start. The
    act of Congress I sign today will protect those who legitimately need
    help, stop those who try to commit fraud, and bring greater stability
    and fairness to our financial system. I'm honored to join the Members of
    Congress to sign the Bankruptcy Abuse Prevention and Consumer Protection
    Act.

    Note: The President spoke at 2:42 p.m. in Room 350 of the Dwight D.
    Eisenhower Executive Office Building. S. 256, approved April 20, was
    assigned Public Law No. 109-8.