The U.S. Senate is poised to take a final vote very shortly on a so-called bankruptcy reform (H.R.3150) bill that would make it much more difficult for individuals and families experiencing serious financial problems to get back on their feet through our bankruptcy system. H.R. 3150 greatly expands the power of large, highly-profitable credit card companies and removes many avenues of relief currently available to debtors.

The legislation still contains provisions which threaten to undermine the collection of past due child support and alimony, despite a huge outcry from NOW and other women's organizations. Sen. Dick Durbin (D-IL) who was to have offered improving amendments from the floor during debate, failed to do so. Even though other improvements were made in the Senate version, H.R. 3150 remains a very flawed piece of legislation and should be defeated.

Reportedly, Democrats and staff members on both the House and Senate sides were frozen out of the conference process. As a result, few people know exactly what is in the final version; although, it is clear that many improvements to protect debtors which had been added in the Senate have been removed.  Special interest provisions which would greatly benefit the banking industry have been piled on and it is expected that other provisions designed to prevent credit card industry abuse such as predatory marketing  to students would have been deleted.

Additionally, a section added in the House (by Rep. Jerrold Nadler, D-NY)  to prevent tobacco companies from declaring bankruptcy to get out of paying litigation settlements is reported to have been dropped.

If this bill passes, we will have a bankruptcy system that is more responsive to the interests of the banking industry as opposed to the interests other creditors  -- especially women and children who rely on child support payments.Debtors will be less able to survive a financial setback. This issue is not about letting irresponsible people walk away from debt.  It's about having a rational system of bankrupcty so that the vast majority of people who encounter financial problems due to job loss, serious illness or divorce can get their lives back together in a responsible manner. This bill does not help them do that.
 

How You Can Help:

Call your senator -- especially if he or she is on the following list -- and urge him to vote against H.R. 3150 Conference Report on final passage. The conferees have not negotiated in good faith, and many key debtor and consumer protections are likely to have been deleted. The bill needs to be defeated -- even if it comes to a filibuster. Sen. Durbin, especially, needs to hear from constituents. Urge him NOT to negotiate. Sen Leahy (D-VT) also needs pressure and should be encouraged to provide support to Sen. Durbin.
 

Call Sens. Baucus (D-MT), Bingaman (D-NM), Breaux (D-LA), Bumpers (D-AR), Byrd (D-WV), Cleland (D-GA), Conrad (D-ND), Dorgan (D-ND), Feinstein (D-CA), Ford (R-KY), Graham (FL), Hollings (D-SC), Johnson (D-SD), Landrieu (D-LA),  Lieberman (D-CT),  Moynihan (D-NY), Murray (D-WA), Robb (D-VA) and Toricelli (D- NJ). Main number for Congress is (202)-224-3121; then ask the operator to connect you with your senator's office.

The White House needs reinforcement as well; the main number is (202) 456-1414. At a press conference signing of the Deadbeat Parents Punishment Act of 1998 on June 24th, the President said that he wanted a bankruptcy bill that did not "put mothers and their children back in the pack along with other creditors." That is exactly what H.R. 3150 does and he should veto it.