Bass and Bradley Like the Bankruptcy Bill

The US House of Representatives is on the verge of approving wide ranging bankruptcy reform. Supporters of the bill say it will crack down on people who are abusing the system. Opponents say it's a harsh blow that removes the possibility of a "fresh start" for those who are in financial trouble.
As Julie Donnelly reports from Washington, all four members of the New Hampshire delegation support the bill.

The premise is simple, according to Republican Congressman Charlie Bass. People who incur debts should have to repay them.
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The bill itself is not so simple. There are two kinds of Bankruptcy - chapter 7 and chapter 13. In a chapter 7 bankruptcy all of the filer's assets are liquidated to pay creditors. Then the rest of the debts are expunged. In a chapter 13 bankruptcy, there is a five year repayment plan and fewer debts are simply wiped out. The bill would make it harder for people to file for chapter 7. Therefore, more would likely file chapter 13 bankruptcy. By some estimates, the credit card industry alone would collect up to a billion dollars more if the bill is enacted.

Travis Plunkett from the Consumer Federation of America, says he's never seen such a one sided bill.
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A coalition of advocates representing lower income people, women's groups, and civil rights groups held an eleventh hour news conference to try to convince congressmen to vote against the bill.

Around the country, a group called the progressive democrats of America held protests in front of congressional home offices.
They were urging people to call their representatives.

Opponents of the bill say that many of the people who file for chapter 7 bankruptcy, do so because of high medical bills, or have financial problems after serving in the armed services. But Congressman Jeb Bradley says the bill is not designed to punish those people
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While opponents of the bill say there has been a growing grassroots movement to defeat it, the news conference was sparsely attended. One problem may be that since most people don't file for bankruptcy, they are unlikely to be passionate about the issue. But opponents like Travis Plunkett say everyone will be affected by what he calls the unchecked power of lenders.
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Congressman Bradley disagrees. He says creditors will still choose to negotiate with debtors, rather than go to court.
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The bill is expected to reach the House floor today. It's already passed in the Senate, where both New Hampshire Senators supported it and Senator Sununu was a co-sponsor of the bill.
Opponents of the bill have offered thirty five amendments, but the Rules committee has decided that none of them will be considered on the House floor.