Bankruptcy Bill Revived

The House has revived and passed the conference report on the consumer bankruptcy bill by attaching it to a farm bankruptcy bill.House leaders are hoping this maneuver will make it easier for the Senate to pass the consumer bankruptcy bill. But Senate Democrats are likely to block consideration of the combined bankruptcy bills. "The House leadership is holding the most vulnerable family farmers hostage, and that is shameful," said Sen. Russ Feingold, D-Wis. "I oppose efforts to hold up the needed and uncontroversial extension of Chapter 12, which is the last resort for family farmers facing financial ruin, in an attempt to push through controversial changes to bankruptcy law without Senate debate." Credit card and auto lenders have been pushing Congress to pass the consumer bankruptcy bill for the past five years. But there are provisions in the bill that affect mortgage lenders. Several provisions would make it more difficult for delinquent homeowners to employ multiple bankruptcy filings as a tactic to delay foreclosure. Another provision would remove a $4 million cap on single-asset bankruptcies so that owners of a single commercial property cannot drag out the bankruptcy process and delay foreclosure at the lender's expense.