LEGISLATIVE REPORT
By Maureen Thompson
NACBA Legislative Director
O
ver the last several years, a
primary objective of NACBA’s
advocacy program has been
to dispel the lingering misperceptions
about
bankruptcy,
bankruptcy
attorneys, and debtors that the credit
industry painted during the years
fighting over BAPCPA.
The economic downturn and stubbornly
slow recovery – due in no small part
to the fact that neither the Obama
Administration nor Congress would
deal seriously with the foreclosure crisis
by pushing for mortgage modification
in bankruptcy – has at least given us a
climate in which to explain bankruptcy
in the context of high unemployment,
underemployment, home foreclosures,
student loans, and so on.
Of course, changing the perception of
bankruptcy is a slow process but we try
to take advantage of all opportunities –
whether in Congress, the news media,
or with current and new allies.
We note with interest that in the first
four months of the 114th Congress, 13
bills were introduced where changes
to the bankruptcy code were offered
as part or all of the solution to the
specific issue. Four of the bills have
been introduced by Republicans, which
may mean a thawing on the part of the
GOP’s fairly rigid opposition to anything
involving bankruptcy in past years.
The four bills from the Republicans
include:
• H.R. 1488, Protecting Gun Owners in
6
CONSUMER BANKRUPTCY JOURNAL
Bankruptcy, introduced by Rep. Chris
Collins (R-NY). 10 cosponsors, all
Republicans. Exempts from property
of the estate $3,000 in firearms.
• H.R. 1196, Health Savings Act of
2015, introduced by Rep. Michael
Burgess (R, TX). Would provide the
same protections in bankruptcy for
Health Savings Accounts as currently
available for retirement savings
accounts.
• H.R, 2267, Protecting All College
Tuition, introduced by Rep. Chris
Collins (R-NY). Three cosponsors, all
Republicans. The legislation would
protect students, parents, and colleges
against a new practice by bankruptcy
trustees targeting tuition payments
parents have made on their children’s
behalf.
• S. 194, Family Farmer Bankruptcy
Clarification Act of 2015, introduced by
Senator Chuck Grassley (R, IA). Two
cosponsors, Senators Franken and
Wicker.
Hill Day at Home
Recognizing that finances are tight for
NACBA members in the current low
filing environment, NACBA decided
last year to take Hill Day to the
home districts and states of federal
lawmakers, thus making it easier for
NACBA members to participate. The
success of last year’s Hill Day at Home
encouraged us to offer it again this
year.
meetings resulted in 21 new cosponsors
of bills NACBA supports:
• 8 new cosponsors signed on to S.
729, Senator Durbin’s bill to restore
bankruptcy discharge for private
student loans;
• 10 new cosponsors signed on to
H.R. 1674, Rep. Cohen’s bill to restore
bankruptcy discharge for private
student loans; and
• 3 new cosponsors signed on to H.R.
449, Rep. Delaney’s bill to restore
bankruptcy discharge for both private
and government student loans.
Notably, one of the new cosponsors
on the Delaney bill is Rep. David
Jolly, a newly elected Republican
Representative from Florida. We are
encouraged by Congressman Jolly’s
support and are following up with key
staff to further gauge his thinking on the
issue.
NACBA also is broadening its focus
toward building support for restoring
bankruptcy rights for all student loans.
Hill Day at Home will remain a key
component of this effort, as it is a
proven success in fostering productive
outreach between NACBA members
and their elected officials.
This year we have had 66 NACBA
members participate in 81 meetings
held to date. Importantly, those 81
Summer 2015
National Association of Consumer Bankruptcy Attorneys