Herb Kohl: “I rise today to express my guarded support for the Bankruptcy Reform Act currently before the Senate. The troubling and…”

“I rise today to express my guarded support for the Bankruptcy Reform Act currently before the Senate. The troubling and dramatic rise in the number of bankruptcy filings demands our careful attention, and this legislation--if balanced and fair--will shore up the most significant cracks in our current system, but still grant a ``fresh start'' to those debtors who truly deserve it. One of the ways this bill works to eliminate the most egregious abuses of the bankruptcy code is by finally placing a federal cap on the unlimited homestead exemption. This provision, which I introduced with Senators Sessions and Grassley, would close an inexcusable loophole which currently allows millionaire deadbeats to keep their luxury homes while their legitimate creditors get left out in the cold. A cap is not only the best policy, it sends the best message: that bankruptcy is a tool of last resort, not a tool for financial planning. And don't just take my word for it: ask my colleagues in the Senate. At the end of last session, we passed our $100,000 homestead cap by an overwhelming margin of 76-22. However Mr. President, if this legislation comes out of Conference unbalanced, rest assured that I will be happy to vote against final passage of the bill, as I did last Congress. A major factor in my determination of what constitutes ``balance'' will be the status of the homestead cap.”