Russ Feingold: “I will oppose the Levin-Durbin amendment, which would make certain judgments against gun manufacturers nondischargeable…”

“I will oppose the Levin-Durbin amendment, which would make certain judgments against gun manufacturers nondischargeable in Chapter 11 bankruptcy proceedings. I appreciate the sincere views of my friends from Michigan and Illinois who have proposed this amendment as a way to highlight the serious issues of gun violence in this country. I do not believe, however, that this amendment is necessary, and I think it has the potential to set a dangerous precedent in our business bankruptcy system. First, there is a real question of whether this amendment is necessary. Chapter 11 business bankruptcy is not like Chapter 7 personal bankruptcy where debts are simply wiped out by the bankruptcy decree. In a Chapter 11 bankruptcy, a business's reorganization plan must receive the approval of the court and of the other creditors. It is far from clear that the kind of judgments that are at issue in the Levin amendment will automatically be discharged in a bankruptcy reorganization. In addition, Chapter 11 bankruptcy often provides a useful forum for making sure that all claimants against a company are treated fairly. We have seen that happen with respect to suits against asbestos and IUD manufacturers. Without it, plaintiffs may end up in a race to the courthouse to try to claim the limited assets of a company.”