Please keep reading for additional details on the bill and the various
amendments that we are supporting.
S. 625 would also make it more difficult for women who are owed past due child support to be able to collect because, under the bill, they would have to stand in line with credit card companies. The legislation contains many other defects such as making it easier for families to lose personal goods and to be evicted. A similar bill passed both the Senate and the House last year, but failed to get Conference Committee consensus and died when the 105th Congress adjourned.
To alleviate some of the negative affects that the bill could have on women and children, Sen. Chris Dodd (D-CT) has proposed three amendments. These amendments would reduce some of bill's harsh and arbitrary barriers to accessing the bankruptcy process. They would also provide better protection of essential household items and would reduce the competition between credit card companies and women and children who are owed past due child support.
Also, Rep. Charles Schumer (D-NY) will offer an amendment that would prevent clinic terrorists from discharging their debts through bankruptcy to avoid paying fines, damages and penalties arising from judgements or litigation settlements in clinic violence cases. This amendment could help to stop terrorist attacks by reinforcing the deterrent effect of the Freedom of Access to Clinic Entrances Act (FACE).
Also, and very importantly, Sen. Paul Wellstone (D-MN) intends to offer several amendments which would address problems encountered by survivors of domestic violence. They would prevent employers from discriminating against survivors by denying insurance coverage or leave under the federal Family and Medical Leave Act. Additionally, Sen. Wellstone may be offering an amendment that would require tracking of Temporary Assistance to Needy Families (TANF) welfare-to-work recipients.
Finally, Sen. Ted Kennedy (D-MA) plans to offer his minimum wage increase amendment that would bring the required wage from $5.15 an hour currently to $6.15 over a two year period. Here’s additional background, as well as some talking points:
1. Sen. Dodd’s first amendment to the bill would broaden the means test to determine if a debtor can repay some of the debt. More family expenditures could be allowed as expenses such as child care, care of the elderly, and health expenses. The second amendment would provide for more allowable child-rearing expenses. Most importantly, it would also allow that child support payments and earned income tax credit would not be subject to the claims of the creditors.
Finally his last amendment would allow that credit card expenses would be nondischargeable only if they totaled more than $400 dollars per item or service, and then only if they were made within 70 days of filing for bankruptcy. In addition, the creditor must prove at a hearing that the items were not reasonably necessary. In the original bill, these debts are not dischargeable if the items reach more than $250, and the debt occurred within 90 days of filing. Also in the original bill the debtor bears the burden of proving that the items were a necessary expense.
2. The Schumer clinic violence amendment would clarify current bankruptcy law where it is not clear that clinic violence fines, penalties and damages are dischargeable. Operation Rescue's founder Randall Terry has attempted to use bankruptcy proceedings to avoid paying $1.6 million debts arising from his acts of clinic violence. Robert and Bonnie Behn, anti-reproductive rights activists, have also filed for bankruptcy arguing in court that a $35,260 fine to Buffalo (NY) GYN Womenservices from violating a restraining order is dischargeable under bankruptcy laws.
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