Bankruptcy bill likely to pass soon

caveats on bankruptcy bill
Overhaul poised for OK after GOP prevails in 2 tallies

By Associated Press | March 3, 2005

WASHINGTON -- Senate Democrats were thwarted yesterday in attempts to soften the effect on seniors of a proposed law making it harder for people to erase their debts in bankruptcy.
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Mostly along party lines, the GOP-controlled Senate voted 59-40 to reject an amendment that would have allowed older people to get special homestead exemptions to keep their homes when they file for bankruptcy. Currently, such exemptions are determined by the states.

''Seniors are the people who need the exemption most," Senator Russ Feingold, Democrat of Wisconsin, said during debate.

In an identical vote tally, the Senate defeated a Democratic proposal to require that credit card statements show how long it would take the consumer to pay off his or her debt by making only the minimum monthly payment.

It was the second day of defeat for Democratic amendments to the sweeping bill to overhaul the bankruptcy code. On Tuesday, the Senate accepted a more limited GOP provision that would give a break to active-duty military personnel and some veterans who file for bankruptcy.

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