Chuck Grassley: “today I am introducing ``The Business Bankruptcy Reform Act of 1998.'' As Members of this body may remember, the…”

“today I am introducing ``The Business Bankruptcy Reform Act of 1998.'' As Members of this body may remember, the National Bankruptcy Review Commission submitted a list of recommendations to Congress in October of last year. So far, the public has tended to focus on the consumer bankruptcy recommendations, which unfortunately would have made it easier to get into bankruptcy and would have given consumers even more of an upper hand. I think that these recommendations were fatally flawed, and that's why I introduced the Consumer Bankruptcy Reform Act with Senator Durbin last year to tighten up the bankruptcy system and provide new consumer protections when creditors use abusive tactics. The legislation I am introducing today will make many badly-needed reforms to the business provisions of the bankruptcy code. This legislation will provide--for the first time ever--new protections for patients of hospitals and HMOs and nursing homes that declare bankruptcy. Under current law, the bankruptcy process is oriented toward protecting the interests of creditors and helping the debtor corporation reorganize. And that is all we need most of the time. But hospitals and HMOs and nursing homes are different. Patients are uniquely vulnerable and Congress needs to take special care to ensure that patients are protected during the bankruptcy process.”