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.