Senate begins debate on bankruptcy legislation

WASHINGTON (AP) — After nearly eight years of trying, proponents of legislation to make it harder to erase consumer debts believe it finally will pass Congress. The Senate began debate Monday on the measure, a priority for Republican leaders.

Many Senate Democrats also support a bankruptcy overhaul but oppose the current bill. They have prepared amendments that would, for example, protect employees of bankrupt companies and exempt military personnel from new restrictions on filing for bankruptcy.

The Democrats also are considering trying to add to the bill an increase in the minimum wage, aides said.

The White House said it supported the bankruptcy legislation.

"These commonsense reforms to the nation's bankruptcy laws will help curb abuses of bankruptcy protections," the White House said in a statement.

In the House, the chairman of the Judiciary Committee, Rep. James Sensenbrenner, R-Wis., has proposed identical legislation.

Supporters hope for congressional passage before lawmakers adjourn for the spring recess next month. They say they are heartened by the swift passage two weeks ago of a bill aimed at discouraging class-action lawsuits.

Making the case for the bankruptcy legislation, Majority Leader Bill Frist, R-Tenn., said in the Senate chamber Monday that "wealthy debtors are walking away from debts they can repay."

Banks, credit card companies and retailers have pushed since 1997 for a bill overhauling the bankruptcy laws.