Dianne Feinstein: “I support S. 1301, and intend to vote for its passage. It gives bankruptcy judges the tools they need to require that…”

“I support S. 1301, and intend to vote for its passage. It gives bankruptcy judges the tools they need to require that capable debtors take responsibility for their debts. Furthermore, it does so in a manner that empowers bankruptcy judges to seek solutions to consumer insolvency, rather than straitjacketing them with a strict formula. Finally, S. 1301 contains strengthened provisions to protect the priority of child support and spousal support, which I supported in the Judiciary Committee. Responsibility cannot be a one-way street, however. The blame for the current record number of consumer bankruptcies lies not only with unsound consumer spending habits, but often with unwise and irresponsible lending practices that facilitate and even foster such recklessness. This amendment aims to deter such recklessness in credit practices. It authorizes the Federal Reserve Board to conduct a study of industry practices of soliciting and extending credit indiscriminately, without taking steps to ensure that consumers are capable of repaying their debt, or in a manner that encourages consumers to accumulate additional debt. The Federal Reserve Board is further authorized to study the effects of such practices on consumer debt and insolvency. Within two years of enactment, the Federal Reserve Board will make public a report on its findings, regarding the credit industry's indiscriminate solicitation and extension of credit.”