See How Your Politicians Voted
Title: Bankruptcy Reform bill
Vote Smart's Synopsis:
Vote to pass a bill that imposes a means test for individuals wishing to file for bankruptcy. The means test determines whether the individual would be allowed to file under Chapter 7, essentially exonerating their debts after they have liquidated their assets, or if they would be forced to file under Chapter 13, requiring them to pay back creditors on a court-approved timetable.
- Creates a "means test" for use of Chapter 7 bankruptcy by determining a person's capacity to repay debt.
- Requires individuals with median incomes or higher to file under Chapter 13, which forces repayment within 5 years.
- Places domestic support obligations such as child support and alimony amongst the first priority claim of non-dischargeable debts on a debtor filing for bankruptcy.
- Requires debtors to file all tax returns, evidence of received payments, monthly net income projections, and anticipated debt or expenditure increases.
- Directs the Small Business Administration to study and report to Congress about the factors that cause small businesses to go bankrupt and how the Federal government can assist small businesses regarding bankruptcy laws.