Jerry Nadler: “I simply want to point out, this amendment originally required that the credit card company that obtained payment from a…”

“I simply want to point out, this amendment originally required that the credit card company that obtained payment from a parent who owed past due child support, a nondischargeable debt, and they obtained the payment from someone who owed child support, had to hold this money in trust for up to 5 years in case they found and made due diligent efforts to find the parent owed the child support and then turned it over to her. The amendment is simply eliminating the due diligence effort and is shortening the time period to 2 years, and what it is really doing is making a real admission. The admission is that when all is said and done, the nondischargeability, making credit card debt nondischargeable, as this bill does, makes it impossible in the post-discharge situation to enforce the child support. The change in this amendment recognizes this, because it would be a real burden to hold it for 5 years. But why would you want to hold it for 5 years? Because the credit card company has gotten to the bank first, and they may not know where or who the child support owed the custodial parent is. This is just throwing in the towel and admitting that we cannot enforce the child support, and there is no point in this situation. And there is no point holding the money in trust for 5 years so we will only do it for 2 years.”