DeLay, House Sends Bankruptcy Bill to President Bush

DeLay: Stopping Abuse, Protecting Consumers; House Sends Bankruptcy Bill to President Bush for Signing

WASHINGTON – House Majority Leader Tom DeLay (R-Texas) today said the bankruptcy bill is another example of the farsighted and fair-minded reform agenda the House of Representatives has been passing for a decade. The House passed the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 by a vote of 302-126, sending the measure to President Bush to be signed into law.

“Every year, loopholes in America’s bankruptcy laws are abused, to the tune of tens of billions of dollars – costs that get passed on to consumers in higher prices and higher interest rates,” DeLay said. “Our bankruptcy protections, which have always been available to debtors as a last resort, have become just another part of financial planning for too many Americans.”

Over the last 15 years, bankruptcy filings have increased 150 percent. The bankruptcy bill, which has been negotiated in the House over the last eight years, acts to bring personal responsibility back to the bankruptcy laws, creating a truly need-based system.

“It isn’t enough to punish the abusers and protect the victims; we must develop a credit system that helps consumers manage their debt before they get in too deep,” DeLay added.

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 includes debtor protections such as credit counseling, financial management courses, and greater clarity in credit card billing statements, while toughening the requirements for declaring bankruptcy in an effort to weed out fraud and abuse within the system.

SOURCE: Majority Leader : Tom DeLay