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. First, it would allow creditors to transfer debtors who can repay their debts from Chapter 7 to Chapter 13 or remove them from the bankruptcy system altogether. To protect debtors from potential harassment, it also would provide stiff penalties for creditors who try to do this without having reasonable grounds to believe that the debtor can repay their debts.
American society tends to sue at the drop of a hat.
My bill would encourage creditors and debtors to solve their differences outside of the costly litigation process with alternative dispute resolution. This page was created and is maintained by the Office of Senator Chuck Grassley.