McCaul Supports Bankruptcy Reform

McCaul Supports Bankruptcy Reform
April 14, 2005

(Washington D.C.)- Congressman Michael McCaul (R-TX) voted today to pass a measure aimed at reforming bankruptcy laws to better serve all Americans. The measure passed 302 - 126.

"Bankruptcy has become a "first stop" rather than a "last resort" for many borrowers who can afford to meet at least some of their financial responsibilities. This raises the cost of credit to the millions of responsible borrowers who pay their bills," stated Congressman McCaul.

Under current law, bankruptcy protection has increasingly become an easy option. This legislation would create a "need based" formula that would require consumers, who have the ability, to partially repay their debts. Furthermore this legislation will establish spousal and child support protections, debtor protection, protection for small business owners and family farmers.

"This legislation will not take away the right to declare bankruptcy for individuals who truly need it, that option will still be available to them. With passage of this legislation we can lower the cost of credit to the millions of responsible borrowers who pay their bills," stated McCaul.

This legislation has passed the Senate and the House and will now go the President for his signature.

http://www.house.gov/apps/list/press/tx10_mccaul/bank_4_14.html