Decades of deficit spending by the federal government has set a bad example. As chairman of the Judiciary subcommittee with primary jurisdiction over the nation's bankruptcy laws, I called a congressional hearing in April to study the issue. Witnesses identified some of the cultural shifts that have led to increased consumer debt and the role of mass credit card solicitations consumers receive in the mail. I also believe the current bankruptcy system makes it too easy to declare bankruptcy. Bankruptcy should be the option of last resort.
Current law allows debtors to avoid repaying their debts when they have the ability to do so.
I believe that Congress needs to tighten federal laws so that bankruptcy is reserved for Americans who really need the extraordinary protections of the bankruptcy code. My bipartisan bill would check bankruptcy abuses. When debtors file under Chapter 7, their debts basically are wiped out. However, Chapter 13 requires debtors to reorganize their debts under a payment schedule. My bill seeks to level the playing field between debtors and creditors.