Chuck Grassley: “Certainly. The following is what H.R. 2415 does: H.R. 2415 Background and Need for the Legislation The bankruptcy system…”

“Certainly. The following is what H.R. 2415 does: H.R. 2415 Background and Need for the Legislation The bankruptcy system is currently in a state of crisis. In recent years, America has witnessed a dramatic explosion in the number of bankruptcy filings. According to statistics from the Administrative Office of the United States Courts, bankruptcies have exploded from 331,000 in 1980 to just under 1.4 million in 1999. It is a matter of serious concern to Congress that the explosion in bankruptcy comes at a time of unprecedented prosperity, with low unemployment and high wages. Unemployment is at an all-time low. Consumer confidence has been high and the Dow Jones Industrial Average at one point rose above the 10,000 mark. Thus, the high rate of bankruptcy filings cannot reasonably be attributed to a slow economy. This state of crisis has a significant negative impact on the American economy. According to the Department of Justice, creditors lose 3.22 billion dollars annually as a result of Chapter 7 bankruptcies filed by individuals who could repay their debts. Obviously, the existence of multi-billion dollar losses attributable to high levels of bankruptcy filings is a clarion call for Congress to reform our bankruptcies laws to require bankrupts who could repay some portion of their debts to do so.…”