Jerry Nadler: “Mr. Chairman, I am surprised to hear the gentleman from Pennsylvania (Mr. Gekas) point out that the National Bankruptcy…”

“Mr. Chairman, I am surprised to hear the gentleman from Pennsylvania (Mr. Gekas) point out that the National Bankruptcy Review Commission supports this. The National Bankruptcy Review Commission rejected the central concept of the bill, the so-called means-based testing. But that he does not care about. Let me simply say this. The Small Business Administration of the United States says the provisions of this bill, without this amendment, would add such substantial additional costs to the reorganization process that many small businesses may forgo reorganization under Chapter 11 and immediately file for Chapter 7 liquidation proceedings. They would be forced to close their doors, leaving their creditors without recourse. The nonbipartisan and widely respected National Bankruptcy Conference says, These cost-raising changes ultimately could deny tens of thousands of small businesses a meaningful opportunity to restructure that have obligations and continue in business. This would close the door on thousands of businesses that would have been able to reorganize successfully if given the chance. The AFL-CIO says, The potentially broad reach of these provisions and the manner in which they restrict the workings of the bankruptcy case for these businesses will likely place numerous jobs at risk.”