Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, March 20, 1992 TAG: 9203200274
SECTION: BUSINESS PAGE: B4 EDITION: METRO
SOURCE: Associated Press
DATELINE: WASHINGTON LENGTH: Medium
The bill also would create an independent body to review federal bankruptcy laws. The measure, approved unanimously by the Senate Judiciary Committee, would set up a commission to study the federal bankruptcy code and make recommendations for changing it.
But the measure was immediately criticized by a consumers' group.
Consumers Union, an advocacy group that publishes Consumer Reports magazine, said the bill would make it easier for creditors to force consumers to pay off debts that would be cancelled in bankruptcy court.
"There are some positive things to say about the bill, but in its current form it is a blow to families already facing tough times," Michelle Meier, a lobbyist for Consumers Union, said in a statement.
The group charged it would be harder for individuals to repay their debts under a provision dealing with Chapter 13 petitions.
The bill would expand the number of individual debtors who could qualify to file for court-supervised reorganization of their personal finances under Chapter 13 of the bankruptcy code.
That provision allows debtors to keep most of their income-producing assets while they come up with a plan to pay off their debts. To apply the provision to more debtors, it raises the debt limit for Chapter 13 filings from $350,000 to $1 million.
An amendment by Sen. Howard Metzenbaum, D-Ohio, makes clear that retired workers would continue to receive health and pension benefits after companies file for Chapter 11 protection from creditors.
It also would authorize state and federal pension fund regulators to sit on creditors' committees in corporate bankruptcies.
by CNB