CONGRESSWOMAN BARBARA LEE DENOUNCES HOUSE PASSAGE OF BANKRUPTCY REFORM LEGISLATION BILL THAT PUNISHES LOW-INCOME WORKERS AND WOMEN
Washington, DC - Congresswoman Barbara Lee today voiced strong opposition to House passage by a vote of 306 to108 of H.R. 333, the Bankruptcy Abuse Prevention and Consumer Protection Act, which is almost identical to the conference report that was pocket vetoed by President Clinton in the 106th Congress.
H.R. 333 makes a number of changes to the bankruptcy laws, including barring those who make more than the median income in their region to file for bankruptcy under Chapter 7, a section of the bankruptcy code that allows debts to be forgiven after liquidation of property and assets. Under H.R. 333, middle-income individuals are required to file for bankruptcy under Chapter 13, which requires debtors to pay off all their debts with future income.
AThis really is an anti-consumer, anti-working family, anti-woman, anti-low-income, ant-child bankruptcy bill,@ said Lee. AMany Americans were left out of the economic Aboom@ of the past decade and are saving less while accumulating more debt. Many working class families are forced into bankruptcy when emergencies arise, and instead of helping working families get back on their feet, this Republican reform bill make declaring bankruptcy much more difficult and stigmatizing.@
A majority of people who file for bankruptcy are working families who have experienced a catastrophic event such as illness, job loss, or divorce. H.R. 333 will also make it much more difficult for businesses to reorganize, thereby forcing them into bankruptcy and eliminating much needed jobs. The bill may also pit single mothers seeking to collect child support against credit card companies.
AHundreds of thousands of women who are owed child support or alimony would be harmed financially under the Republican bill,@ said Lee. A The bill does nothing to protect women owed support by men who declare bankruptcy or those who need to declare bankruptcy themselves due to financial hardship when their former spouse or non-custodial parent fails to pay support.@
AAdditionally, H.R. 333 fails to ensure that parents and children will have first claim on the bankruptcy filer=s funds, rather than big business collection departments,@ said Lee. AI cannot support the punitive Republican bankruptcy reform legislation. The Democratic alternative more sensibly changes the means test, adds consumer privacy protections, and further benefits consumers and struggling businesses.@
Labor unions, consumer groups, and women=s, children=s, and senior=s advocates all adamantly opposed H.R. 333. Congresswoman Lee thanked her Democratic colleagues who had the courage to oppose H.R. 333, and urged the Senate to pass a more sensible alternative.
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