Orrin Hatch: “S. 1301, the Consumer Bankruptcy Reform Act of 1998, was reported out of the Judiciary Committee with strong bipartisan…”

“S. 1301, the Consumer Bankruptcy Reform Act of 1998, was reported out of the Judiciary Committee with strong bipartisan support and is one of the most important legislative efforts to reform the bankruptcy laws in 20 years. I would like to begin by commending my colleagues, Senators Grassley and Durbin, respectively, the chairman and ranking minority member of the Subcommittee on Administrative Oversight and the Courts, for their tireless efforts in crafting this much needed legislation. I also want to thank them for conducting numerous important hearings at the subcommittee level on the complex issue of bankruptcy reform. I particularly appreciate the dedication they have shown to making the passage of this bill an inclusive and bipartisan process. The compelling need for reform is underscored by the dramatic rise in bankruptcy filings each year. The Bankruptcy Code was liberalized back in 1978, and ever since that time, consumer bankruptcy filings have gone up at an unprecedented rate. Even during the economic boom years of 1994 to 1997, consumer bankruptcy filings almost doubled. Mr. President, the bankruptcy system was intended to provide a ``fresh start'' for those who need it. We need to preserve the bankruptcy system within limits to allow individuals to emerge from financial ruin, which may have been precipitated by unforeseen events such as medical problems or unemployment.”