Bankruptcy Reform in the 108th Congress

Publication Date: January 2004

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Banking and finance

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Abstract:

On March 19, 2003, the House of Representatives passed H.R. 975, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2003. H.R. 975, as introduced, was substantially similar to the legislation (H.R. 333) approved by both the House and the Senate during the 107th Congress, but omitted the Schumer Amendment which would have prevented the discharge of liability for wilful violation of protective orders and violent protests against providers of "lawful services," including reproductive health services. As passed by the House, H.R. 975 was amended to add sections to, among other things, increase the cap on wage and employee benefit claims. The Senate did not consider H.R. 975 during the first session of the 108th Congress.

On November 25, 2003, the Senate passed S. 1920, providing for a six-month extension of Chapter 12 of the Bankruptcy Code. The House took up S. 1920 on January 28, 2004, with an amendment in the nature of a substitute consisting of the text of H.R. 975 as passed by the House on March 19, 2003.

S. 1920, as amended, was passed by the House and conferees appointed to resolve differences with the Senate. S. 1920, as passed by the House, addresses many areas of bankruptcy practice, including consumer filings, small business bankruptcy, tax bankruptcy, ancillary and cross-border cases, financial contract provisions, amendments to chapter 12 governing family farmer reorganization, and health care and employee benefits.

This report provides an overview of selected major provisions of the legislation. It will be updated as events warrant.