mr. speaker , the `` bankruptcy abuse prevention and consumer act '' is long overdue and with house passage later today , it stands a very real prospect of becoming law . 
it 's been an extremely long road to reform . 
i originally supported bankruptcy reform in 1998 with former representative george gekas . 
ironically , the legislation was drawn from the recommendations of the bipartisan national bankruptcy review commission that was established through legislation passed in 1994 by a democratic-controlled congress . 
it enjoyed the same level of bipartisan support as when it passed the senate last month . 
the main component of the commission 's recommendations and the legislation we have here today is to establish a means-based test to determine who should work with creditors on a plan to repay their debts and those who can not afford to do so . 
sometimes a market-based capitalist economy can be unforgiving , but americans are fair and decent people . 
we want a system that allows a fresh start to those in financial trouble , but also one that promotes personal responsibility and is not susceptible to fraud and abuse . 
the means test in this bill carves out a series of exemptions to steer those who can afford to repay at least part of their debt toward a chapter 13 repayment plan . 
this test takes into account exemptions for living expenses , health and disability insurance , expenses to care for an elderly or disabled family member , secured debts , and home energy costs among others . 
it also recognizes situations where individuals face overwhelming medical costs or other debilitating situations . 
under the bill , if an individual can demonstrate `` special circumstances '' that create an overwhelming financial burden , those individuals would not be required to file for chapter 13 . 
as a final safeguard , those people earning less than their state 's median income would automatically be ineligible for chapter 13 . 
it is estimated that only a small minority of those already filing for bankruptcy would be affected , perhaps as little as 7 percent . 
contrary to some reports , families and individuals facing difficult economic circumstances , people who may have lost their job or family breadwinner or have been devastated by a severe medical condition , will be given a chance to clear their debts and receive a fresh start under this bankruptcy reform legislation . 
back in 1998 , i encouraged supporters of the bill to improve its consumer protection provisions . 
they responded by making child support a priority in a repayment plan , requiring credit counseling prior to filing for bankruptcy , and limiting abuses caused by a few unscrupulous individuals who hide their wealth behind a state 's homestead provisions . 
at the onset of the 107th session , i sought and won the house 's approval of my pro-consumer amendments that remain a part of today ' s bill . 
these provisions : require credit card companies to include a disclosure statement highlighting the number of months necessary to repay a balance if the card holder were to pay only the minimum amount due ; require credit card companies to inform cardholders on when their low introductory rates expire and new higher rates take effect ; and prevent deceptive and fraudulent advertising practices by debt relief agencies by making certain that creditors are informed of their rights as debtors . 
could these provisions be perfected ? 
i suspect so . 
there were several other consumer protections we were unsuccessful in getting included . 
but perfection should not be an enemy of the good . 
increasingly , bankruptcy has become a tool of first impulse rather than a last option after all other avenues have been exhausted . 
last year , 1.6 million consumers filed for bankruptcy , a figure just short of the number of filings in 2003 , which represented the most in our nation 's history . 
how is it that during periods of sustained economic growth and prosperity , such as during the clinton presidency , when all incomes rose , bankruptcies also continued to climb ? 
s. 256 has been criticized for advancing the interests of the credit card industry on the backs of the poor and the middle class , many of whom are in debt because of circumstances beyond their control . 
i am sympathetic to this argument , but the flaw is not with this legislation . 
those deserving of a fresh start will still be able to do so under this legislation . 
the real flaw is with an agenda that the majority continues to advance . 
most families in dire financial straits and filing for bankruptcy will be able to discharge their debts under this legislation . 
but why are they facing bankruptcy ? 
one reason is that 41 million americans are uninsured because the majority party refuses to address this growing crisis . 
another is because 7.3 million americans live on the minimum wage , more than one-third of whom rely on the $ 5.15 cents per hour to support their family . 
they last saw a minimum wage increase in 1997 . 
it is because during the height of the last recession , the majority party refused to allow any extension of unemployment benefits , because they were too busy falling all over themselves to cut taxes for the wealthiest americans . 
we just passed this week a permanent elimination of the estate tax , helping the wealthiest among us avoid paying any tax on their untaxed earnings , and passed a budget resolution that will cut health care to the indigent . 
mr. speaker , bankruptcy reform has merit and should become law . 
it is the majority 's overall agenda that is bankrupt and in need of reform . 
