Iowa Attorney Lawyer

Four months before the bankruptcy reform, everything was dead, but on Capitol Hill, to the attention of Congress focused on the war against terrorism and the Enron scandal.

But ironically, the bankruptcy of Enron, one of the forces that nearly derailed the bill is an important factor behind him on the way back. Tuesday evening, a group of the House of Representatives and the Senate of the law to make a breakthrough reached a compromise on an issue central to the passage of the legislation - hotbed of liberation.

In five countries - Texas, Florida, South Dakota, Iowa, Kansas - bankruptcy filer can shield an unlimited number of Home Equity creditors as part of a farm release. In a post-Enron, as a gap, the more fortunate that workers established on Junior staff increasingly unpopular.

The House of Representatives and the Senate agreement combines elements of two bills aimed at preventing or reducing the use of the provision. The home exemption is capped at $ 125000 for convicted felons, with debts or persons in relation to a breach of the provisions of titles of the last 10 years. The agreement also creates a stay of 40 months of the request for authorization to qualify for the Liberation unlimited, so that the debtor to relocate, one of the countries where the exemption.

The compromise, drafted by Democratic Senator Herb Kohl of Wisconsin, was inspired by Enron. “Under the foyer of the liberation of this law in Texas, for example, Ken Lay of Enron bankruptcy could infamy and maintain its $ 7 million Penthouse-Habitat and the shield of its creditors, Enron, employees and Enron investors in action “, President of the Senate justice said Patrick Leahy, D-Vt., in a statement.

Most differences between the Senate and the House bankruptcy reform bills have been eliminated, but one obstacle remains controversial. In the Senate, as amended by law, there is a provision to ensure that they are required to crimes of violence by abortion clinics outside the bankruptcy of their fines.

Democrats, led by Senator Charles Schumer of New York, to support action against opponents of abortion. “We have only one problem left to work,” said Jeff Lundgren, spokesman of the Senate Judiciary Committee press.

Tuesday evening, a compromise on the place of residence of the release of Bill brings a step closer to passage - something seemed unlikely four months ago. In an election year, facing a recession, the bankruptcy of the accounting reform has been little support from politicians, did not want in relation to the debt-umreiften affect voters and help the rich credit card companies. In fact, the bill would be easier for credit card companies to take debtors assets under management of bankruptcy.

Passage of the reform of the bankruptcy would be the most important revision Bankruptcy Code in more than 20 years. According to the bill would be submitted to the bankruptcy filer an examination provided to decide if, for Chapter 7 protection file, which discharge of most debts, or Chapter 13, which is not the relief of debts and draw up a plan for eradication.

Proponents say the measure is to ensure that the poorest people continue to use the bankruptcy protection, while more than forcing the rich to pay. Critics argue that credit card companies and banks, loans at low risk and should not have to deny the protection of their bankruptcy.

Passage of the end of a turbulent 13 months travel this law.

Both bills broad support from the House of Representatives and the Senate in March 2001, with close to the house account 306 to 108 and go through the Senate 83 to 15 The first conference for the committee meeting was September 12 , But was postponed after the terrorist attacks arrested Congress. One bill has never been incurred during the months of November-reunion, and no date of the second meeting, many, including trailers, in principle, the bill was dead.