Ron Kind: “I rise to share my support for H.R. 333--the Bankruptcy Abuse Prevention and Consumer Protection Act. This measure…”

“I rise to share my support for H.R. 333--the Bankruptcy Abuse Prevention and Consumer Protection Act. This measure, though not perfect, ensures debtors who can afford to repay their debt do so, while at the same time protecting consumers. Bankruptcies negatively affect people in the form of higher prices and tightened credit access for lower-and middle-income taxpayers. It is estimated that over $40 billion was discharged through bankruptcies last years. As we all know, money lost to bankruptcies is passed on to consumers in the form of higher prices for goods and services. H.R. 333 also ensures that those individuals with the ability to repay their debts do so while protecting those truly in need. This legislation creates a needs based system and assures that those who can afford to pay are required to do so. A recent study determined that 15 percent of Chapter 7 filers could repay an average of 64 percent of their debt. Most importantly, H.R. 333 makes all marital and parental obligations to children the first priority for payment in bankruptcy proceedings. It is for this reason a number legal and child support enforcement organizations strongly support the bill. While H.R. 333 is a good bill that could get better. It is my hope that House and Senate negotiators, during conference committee discussion, will work to eliminate current homestead exemption loopholes and seek to protect families from abusive reaffirmation practices of creditors.”