House passes bankruptcy bill

Northwestern Financial Review, Apr 1, 2001

The House approved bankruptcy reform legislation on a 306-108 vote. The bill would establish a "means test" to determine whether people should be allowed to file for protection under Chapter 7 of the Federal Bankruptcy Code, which discharges filers from nearly all debts. It would make more debtors file under Chapter 13, which requires debtors to pay off some of their debts.

The Senate took up the bill for consideration March 12. If the Senate incorporates the House's amendments, it eliminates the need for compromises between the two chambers and hastens its delivery to President Bush, who is likely to sign the bill.