Bankruptcy Reform Legislation in the 107th Congress: A Comparison of H.R. 333 As Passed by the House and the Senate

Publication Date: July 2002

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Economics

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Abstract:

H.R. 333, 107th Congress, 1st Sess. (2001), the “Bankruptcy Abuse Prevention and Consumer Protection Act of 2001” and its counterpart in the Senate, S. 220, 107th Congress, 1st Sess. (2001), the “Bankruptcy Reform Act of 2001” were introduced on January 31, 2001.

As introduced, the bills were essentially identical both to each other and to H.R. 2415, 106th Congress, 2d Sess. (2000), which passed both chambers but was pocket vetoed by former President Clinton. On March 1, 2001, the House passed a slightly amended version of H.R. 333 by a vote of 306-108, after having first rejected a Democratic-sponsored substitute on a 160-258 vote.

The Senate Judiciary Committee completed a two-day mark up of S. 220 by reporting out a clean bill, S. 420, on a 10-8 vote. S. 420 was similar to S. 220. It was brought to the floor on March 7. After several days of debate, cloture was invoked. Amendments were agreed to and the bill was passed on March 15, 2001 by a vote of 85-15. On July 17, 2001 the Senate passed H.R. 333 with an amendment in the nature of a substitute. It struck the language of the House version and replaced it with the language of S. 420. H.R. 333, as amended, passed the Senate by a vote of 82-16.

The bills, which were identical when introduced, retain their core features. But, because H.R. 333 passed the House and the Senate in different forms, it required a conference. Both the House and the Senate appointed conferees in July, 2001. The conference met on May 22, 2002, but has not yet released its report. So far, the 107th Congress has demonstrated widespread support for the bills evidenced by the votes. Although President Bush is expected to sign bankruptcy reform into law, the White House has indicated that a bankruptcy bill that contains a federal homestead cap may be unacceptable.

This report surveys the bills and the major amendments that have been adopted. It provides a sectional analysis comparing selected provisions, with an emphasis on consumer bankruptcy.