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Congress Fails To Pass Bankruptcy Reform

September 13, 2002

Yesterday, the Leadership of the U.S. House of Representatives decided to postpone passage of the Conference Report on the " Bankruptcy Abuse Prevention and Consumer Protection Act of 2002" until after the November elections. Action on the bill was delayed to accommodate several conservative members of the House who had issues related to language limiting bankruptcies of persons convicted of bombing abortion clinics. The bill may be brought up in a projected Lame Duck session which is tentatively scheduled for mid-November.

The legislation includes several provisions affecting real estate. ALTA thanks the grassroots support of those members who helped achieve enactment of several provisions to overturn the ninth circuit decision in McConville which limited the protection of undisclosed post-petition transfers to fee interests and excluded other interests in real property, such as liens arising under a mortgage or deed of trust. ALTA was also successful in obtaining an amendment in the bill that provides an exception to the automatic stay so that post petition transfers of security interests in real property may be subject to foreclosure.

For further information contact Ann vom Eigen Legislative/Regulatory



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How To Find Us:
American Land Title Association
1800 M Street, NW, Suite 300S
Washington, D.C. 20036-5828
P. 202.296.3671 F. 202.223.5843
www.alta.org
service@alta.org
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