Cord Byrd: “I shall vote in favor of S. 625, the Bankruptcy Reform Act of 1999, in order to restore fiscal responsibility to the…”

“I shall vote in favor of S. 625, the Bankruptcy Reform Act of 1999, in order to restore fiscal responsibility to the nation's bankruptcy code. Last year, a record 1.4 million people declared bankruptcy, which was almost triple the number in 1988 (549,612) and five times the number in 1980 (287,057). That the number of households in severe financial difficulty has risen so dramatically is perplexing, given the prosperous economy, and suggests that some filers are abusing the bankruptcy code to erase debts they are able to pay. The dramatic rise in bankruptcy filings may also suggest that there is no longer a stigma attached to bankruptcy filers, and that the bankruptcy laws are seen more as a financial planning tool rather than a system of last resort. This bill would curb potential abuses of the bankruptcy code by channeling debtors away from chapter 7 liquidation, where a debtor's liabilities are erased, and towards chapter 13 repayment, where debts are reorganized under a repayment plan. While I am not satisfied that this bill will decrease the bankruptcy rate as dramatically as advocates claim, I am convinced that S. 625 is a worthwhile effort in restoring fiscal responsibility.”