Bankruptcy Bill Moves To the Full Senate

February 18, 2005

The Senate Judiciary Committee passed bankruptcy reform legislation on Thursday. The legislation’s sponsor, Sen. Chuck Grassley (R-Iowa), said the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (S. 256) passed by the committee was generally intact and should be considered by the full Senate during the week of Feb. 28. The bill’s goal is to move people who can afford to repay their debts into a Chapter 13 debt repayment plan rather than a Chapter 7 debt cancellation plan. Grassley said the bill would end abuse while helping people in unfortunate situations get the fresh start they need.