New Democrats Urge Speaker to Advance Bankruptcy Bill

WASHINGTON, DC-- With consumer debt reaching record highs of more than $2 trillion, members of the New Democrat Coalition (NDC) sent a letter today to Speaker Dennis Hastert, urging him to schedule House action on the bankruptcy reform legislation as soon as the Senate completes its consideration of the bill.  The letter, signed by twenty NDC members, including the four NDC leaders, reiterates New Democrats’ long-standing support for common-sense bankruptcy legislation and states an intention to work across the aisle to pass bankruptcy reform into law.

“I’m pleased to see so many New Democrats band together in calling for a mainstream solution to bankruptcy reform.  I hope Speaker Hastert will heed our calls and move promptly to bring this legislation to the floor soon,” said Rep. Ellen O. Tauscher.

“This bankruptcy bill strikes an equitable balance between essential protections and responsible reform necessary to curb abuses of the current code by people with the financial means to pay their debt,” stated Rep. Kind.  “As champions of both personal and fiscal responsibility, New Democrats supported bankruptcy reform in the past, and we stand ready to adopt this common-sense measure when it comes to the floor of the House.”

“The bankruptcy legislation needs to be brought to the House floor,” said U.S. Rep. Adam Smith. “Personal responsibility is an important value that must be part of our public policy.  This legislation ensures that Americans must make good on their commitments while also protecting those who truly need help under Chapter 7 bankruptcy laws.”

“Bankruptcy is an option that ruins credit and homeownership opportunities for too many Americans,” said Rep. Artur Davis.  “This legislation will deter bankruptcies that are unnecessary and ill considered, while still permitting a fair second chance for low-to-moderate income consumers who face financial hardship.  Individual consumers and businesses will benefit from a more streamlined bankruptcy system.”

Letter below, pdf version attached.
 

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The Honorable J. Dennis Hastert
Speaker
U.S. House of Representatives
H-232, The Capitol
Washington, DC 20515

Dear Mr. Speaker:

We write to encourage you to bring bankruptcy reform legislation to the House floor as soon as the Senate completes its consideration of the bill.  The New Democrat Coalition has backed common sense bankruptcy reform in the past and helped in passing the bankruptcy reform bill by overwhelming margins in the House of Representatives during the 108th Congress.

Over the last several years, we have worked to advance reasonable and balanced legislation that would require individuals who have the ability to repay their debts to do so, while preserving the important safety net of bankruptcy under Chapter 7 for those who truly need it.  We believe that responsible bankruptcy reform embodies the New Democrat principle of personal responsibility, while at the same time adding important new consumer protections such as requiring enhanced credit card disclosure information and encouraging participation in consumer credit counseling.

It is our hope that the House of Representatives will consider this important piece of legislation in an expedited manner.  We stand ready to work with you and our colleagues on both sides of the aisle to pass bankruptcy reform into law.

Sincerely,

Rep. Ellen O. Tauscher
Rep. Adam Smith
Rep. Ron Kind
Rep. Artur Davis
Rep. Carolyn McCarthy
Rep. John Larson
Rep. Stephanie Herseth
Rep. Dennis Moore
Rep. Mike McIntyre
Rep. Joe Crowley
Rep. Jay Israel
Rep. David Wu
Rep. Diane Hooley
Rep. Melissa Bean
Rep. Jim Davis
Rep. Harold E. Ford, Jr.
Rep Ed Case
Rep. Jay Inslee
Rep. Shelley Berkeley
Rep. Gregory W. Meeks

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