U.S. Chamber Awaits Senate Action on Bankruptcy

WASHINGTON, D.C.—The United States Chamber of Commerce is anticipating the Senate will pass legislation shortly, which reforms our nation's bankruptcy laws and requires wealthy debtors to repay their debts, and urged the House to follow suit.

"Reform of our nation's bankruptcy laws is long overdue," said Thomas Donohue, Chamber President and CEO. "People who can't afford to pay their debts have nothing to fear from bankruptcy reform, but those who can will be held accountable."

The bipartisan bill institutes a needs-based test that requires wealthy debtors to work out a repayment plan – rather than shielding their assets and escaping their bills – while preserving bankruptcy protections for legitimate filers. Current law encourages debtors to take advantage of numerous loopholes and shield their debts against repayment.

The number of bankruptcies has risen from 348,000 to 1.4 million over the last 15 years and businesses swallow nearly $40 billion in bankruptcy losses each year. Small businesses often have difficulty recovering these losses because the cost of doing so is prohibitively high.

"The House should follow the Senate's lead – and the president should sign this bill as soon as possible. Wealthy debtors should not pass the buck to business and consumers," said Donohue. "It is vital to our economy to reintroduce personal responsibility into a critically flawed system."

Few, if any, bills have undergone such an extensive process of committee hearings and amendments accompanied by repeated and overwhelming bipartisan floor votes, according to the Chamber.

The U.S. Chamber of Commerce is the world's largest business federation, representing more than three million businesses and organizations of every size, sector, and region.

# # #

05-39