Grassley Assured that Flood Victims Will Receive Flexibility in Bankruptcy Proceedings

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GRASSLEY ASSURED THAT FLOOD VICTIMS WILL RECEIVE FLEXIBILITY IN BANKRUPTCY PROCEEDINGS

Grassley assured that flood victims will receive flexibility in bankruptcy proceedings

Senator Chuck Grassley has received word from the Department of Justice that the same flexibility in bankruptcy rules provided to victims of Hurricane Katrina will be extended to victims of the Midwest floods.

Following Hurricane Katrina, the Executive Office for the United States Trustees provided guidance for bankruptcy cases during natural disasters, including allowing for relaxation of bankruptcy deadlines and other bankruptcy filing requirements, as well as extending waivers of credit counseling and debtor education requirements.

"More than a month after the floods, Iowans are still struggling to dig out of the mud and muck left behind. Unfortunately, in these dire circumstances, some people may have no other option than to file for bankruptcy relief and it's important to know that the flexibility will be there for them," Grassley said.

Last week, Grassley questioned Attorney General Michael Mukasey during an oversight hearing of the Senate Judiciary Committee on several aspects of the Justice Department's response to the massive flooding in Iowa. Due to time constraints, Grassley was unable to complete his line of questioning related to the Department's handling of bankruptcy filing requirements. Grassley instead sent the Department a letter asking for a response in writing to concerns of Iowans.

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