Bankruptcy Reform Legislation Introduced

February 1, 2001

WASHINGTON---House Financial Services Committee Chairman Michael G. Oxley (R-OH) is an original cosponsor of legislation introduced yesterday by U.S. Rep. George Gekas (R-PA) to reform the nation’s bankruptcy law. Because bad debt is ultimately passed on to the consumer, every American family pays the freight for bankruptcy, a cost estimated at $550 per family per year

."The system doesn’t work, because those who responsibly manage their money are penalized and must pay for those who don’t," Oxley said. "This takes the form of higher prices on consumer goods and higher interest rates."

The legislation would require those who are able to pay their debts to work out repayment plans. Also, means testing would address the flaw in the system that encourages people to file for bankruptcy and walk away from their debts.

Strong bankruptcy reform legislation passed the House and Senate by comfortable margins in the last Congress. The measure died when President Clinton opposed the legislation and exercised his pocket veto authority.

he House Judiciary Committee and the House Financial Services Committee have received the bill for consideration.

Source: House Financial Services Committee


Contact ALTA at 202-296-3671 or communications@alta.org.

SoftPro, based in Raleigh, NC, offers a mature suite of products, designed specifically for the closing and title industry. Our mission is to serve our client base, with best-in-class products and services. Our products are modular so we don't force you to buy anything you don't need. You can always add on as your business grows. Unlike other software companies, we view the sale as the beginning of the relationship rather than the end. North American Title Insurance Company (NATIC) is a seasoned title insurance underwriter, helping title agents to achieve their individual business goals for more than 50 years. Today, the company conducts real estate settlement services in 39 states and the District of Columbia through a network of experienced, independent agents.