Republicans work to send bankruptcy reform bill to House

WASHINGTON — Republicans rejected Democratic efforts on Wednesday to change Senate-passed bankruptcy legislation and worked to send the biggest overhaul in a quarter-century to the full House for expected approval.

On a party-line vote of 22-13, the House Judiciary Committee approved the bill, which would make it harder for people to wipe away debts in bankruptcy. A lone Democrat, Rep. Rick Boucher of Virginia, joined the majority Republicans to support the legislation.

Earlier in a daylong session, committee Democrats lost in a series of partisan votes when they proposed amendments to the bill.

As a result, the legislation remained in the form the Senate passed, by a 74-25 vote, last week.

"The fix is in," said Rep. Sheila Jackson Lee, D-Texas. "This is a prime example of class warfare."

The legislation would require people with incomes above a certain level to pay credit-card charges, medical bills and other obligations under a court-ordered bankruptcy plan.

In the current system, bankruptcy judges decide whether someone can have their debts dissolved, with certain assets forfeited, or must repay them.

Congressional and industry supporters of the legislation, especially banks and credit card companies, have sought the changes for eight years. They have argued that too many people with the ability to repay at least a portion of the money they owe were walking away from all their debts.

"The need for bankruptcy reform is long overdue and crucial to our nation's economy and the well-being of our citizens," said the committee chairman, Rep. James Sensenbrenner, R-Wis.

Opponents say the changes would keep people who are overwhelmed by medical costs or loss of a job hopelessly in debt for the rest of their lives.

Committee Democrats said the bill would turn the federal government into a collection agency for credit card issuers, retailers and other creditors.

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On the Net: Information on the bill, S. 256, can be found at thomas.loc.gov/