Sen. Chuck Grassley Introduces Bankruptcy Reform Bill

February 3, 2005

Sen. Chuck Grassley (R-Iowa) introduced legislation to overhaul the nation’s bankruptcy code on Tuesday to end abusive and frivolous bankruptcy filings.

Grassley said his bill would require people who can repay their debts to do so through a repayment plan under Chapter 13 of the bankruptcy code. The legislation has a safe harbor for the poor, and would allow people who earn less than the median income in their state to file under Chapter 7 where debts are cancelled.

Other provisions of the bill include:

  • requiring credit card companies to disclose the dangers of making only minimum payments and prohibiting deceptive advertising of low introductory rates;
  • strengthening enforcement and penalties against abusive creditors for predatory debt collection practices;
    requiring credit card companies to establish a toll-free number for consumers to get information on how long it will take to pay off their balance; and,
  • establishing new education and counseling programs on financial management.

Contact ALTA at 202-296-3671 or

SoftPro is the nation's leading provider of closing and title software, consistently pushing the technological envelope to pioneer the most powerful and comprehensive closing and title automation software on the market. SoftPro's Award-Winning Software combines cutting-edge technology with outstanding support to make your business more productive, efficient and boost your revenue. At ALTA SPRINGBOARD, we vow to give you a forum for fresh thinking and new insights, and help accelerate your career and differentiate your business from the pack.