Bankruptcy Reform Bill Headed for Senate Vote
The U.S. Senate is soon expected to take up the ?Bankruptcy Abuse Prevention and Consumer Protection Act of 2005? (S. 256). This is a pro-business bill.
HOW YOUR BUSINESS IS AFFECTED
According to information collected by the U.S. Chamber of Commerce, the number of bankruptcy filings has grown substantially in recent years. The reason: people simply want to walk from their debts rather than pay them. This type of abuse transfers the debt burden from individuals to businesses like yours.
THE SOLUTION
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, S. 256, would institute a ?needs-based test,? requiring wealthy debtors to work out a repayment plan under Chapter 13 of the Bankruptcy Code. This ?needs-based? test should stop the rampant abuse of the bankruptcy system that is harmful to the business community.
STATUS
Several amendments may be offered to the bill during debate on the Senate floor which would substantially weaken the bill.
About the Author
Marian J. Marshall was the Director of Government Affairs for the Mason Contractors Association of America.
