The American Bankruptcy Institute reported the 106th Congress adjourned sine die Friday, closing out any hope for final enactment of the Bankruptcy Reform Bill. President Clinton now can safely pocket veto the bill.
The official end of the Congress means that the bankruptcy reform process will have to begin over in the 107th Congress. Even though the bankruptcy bill remains popular with members on both sides of the aisle, and the new President Bush will be more sympathetic to bankruptcy reform than President Clinton, the process will not be an easy one. Both prime sponsors of the bankruptcy bill (Sen. Charles Grassley [R-Iowa] and Rep. George Gekas [R-Penn.]) will be giving up the chairs of the respective bankruptcy subcommittees of the Senate and House Judiciary Committees. The Senate’s coming 50-50 split in power also could make it difficult to move a bill similar to the one now on the table.
Also failing, as reported by the American Bankruptcy Institute, were the reenactment of Chapter 12 of the Bankruptcy Code (Family Farmers) which expired on June 1, 2000, and the authorization of 23 new bankruptcy judgeships, according to Capitol Hill sources. Both were included in the reform bill package.
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 firstname.lastname@example.org.
© 2000 Capehart & Scatchard, P.A.