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President Bush Signs Chapter 12 Bankruptcy Extension; Bankruptcy Reform Bill Stalled in Committee

On May 18, 2001, President Bush signed H.R. 256, which retroactively and temporarily re-enacts chapter 12 bankruptcy protection to family farmers through the end of the month according to the American Bankruptcy Institute. The legislation, which originally expired last summer, was passed by a voice vote by the Senate in April. The American Bankruptcy Institute reports the proposed bankruptcy reform bill (S .420, H.R. 333) contains a measure making chapter 12 permanent, but despite the bill’s passage by both the Senate and House, an impasse over the makeup of conference committees has prevented the measure from reaching the President’s desk. The temporary extension of Chapter 12 bankruptcy protection will expire at the end of the month.

Senate Finance Committee Chairman Charles Grassley (R-Iowa) has indicated that no progress is being made toward reaching a bipartisan agreement on proceeding to a bankruptcy reform conference committee, according to the American Bankruptcy Institute and Congress Daily. Although the bankruptcy bill passed both the House and Senate earlier this year, it has remained untouched as Senate leaders seek agreement on the make-up of the conference committee.

This Alert was written by Alan P. Fox, Esq., Shareholder in Capehart Scatchard’s Commercial Group. Should you have questions or like more information, please contact Mr. Fox at 856.914.2056, by fax at 856.235.2786, or by e-mail at afox@capehart.com.

© 2001 Capehart & Scatchard, P.A.

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