Chuck Grassley: “The first thing I want everyone who has questions to know about this legislation is that we want people who have health…”

“The first thing I want everyone who has questions to know about this legislation is that we want people who have health insurance to maintain their health insurance when they go into bankruptcy because our legislation provides that health expenses, including health insurance, under the IRS guidelines--which are used by the bankruptcy court in deciding the ability to repay debt under our means test--are fully accounted for. Not only are health insurance premiums subtracted, but all health care costs are subtracted out of a person's ability to pay in making a determination whether they go into chapter 7 where they get a completely fresh start, or whether they go into chapter 13 to make a determination of whether or not they have the ability to repay. If they are in chapter 13, then the extent to which they repay the final judgment is that those people in chapter 13 will not get off scot-free. But in making that determination, all health costs are taken into consideration.”