mr. speaker , i yield by myself such time as i may consume . 
mr. speaker , i rise in support of s. 256 , the bankruptcy abuse prevention and consumer protection act of 2005 . 
this legislation consists of a comprehensive package of reform measures pertaining to consumer and business bankruptcy cases . 
the current system has created a set of incentives that encourage opportunistic personal filings and the abuse of a bankruptcy system originally intended to strike a delicate balance between debtor and creditor rights . 
these abuses ultimately hurt debtors as well as creditors , consumers as well as businesses , suppliers as well as purchasers . 
the only winners in the current bankruptcy system are those who game the system for personal gain . 
s. 256 restores personal responsibility and integrity to the bankruptcy system and ensures that the system is fair to both debtors and creditors . 
this legislation represents the most comprehensive reform of the bankruptcy system in more than 25 years . 
as many of us know , bankruptcy reform has been subject to exhaustive congressional review for more than a decade , beginning with the establishment of a national bankruptcy review commission in 1994 . 
it is important to note that over the course of the last four congresses , the house has passed bankruptcy reform on eight separate occasions by overwhelming and bipartisan margins . 
this bill will help stop fraudulent , abusive , and opportunistic bankruptcy claims by closing various loopholes and incentives that have produced steadily cascading claims . 
central to these reforms is a merit-based test that reflects the commonsense proposition that those who are capable of repaying their debts after seeking bankruptcy relief must actually repay their debts . 
s. 256 will also give the courts greater powers to dismiss abusive bankruptcy cases and to punish attorneys who encourage their clients to file such claims . 
in addition , the bill prevents violent criminals or drug traffickers from using bankruptcy relief to evade their creditors . 
the bill closes the `` millionaire 's mansion '' loophole in the current bankruptcy code that permits corporate criminals to shield their multi-million dollar homesteads from deserving creditors . 
of critical importance , the legislation prevents deadbeat parents from abusing the bankruptcy system to shirk their child support obligations . 
with respect to these reforms , the national child support enforcement association stated that s. 256 is `` crucial to the collection of child support during bankruptcy. '' some might ask why congress has been so concerned about abuse in the bankruptcy system . 
the answer to this question should be obvious . 
it is estimated that every american household bears an annual $ 400 hidden tax for profligate and abusive bankruptcy filings . 
that is a $ 400 tax on every household that no politician has to vote for , but gets paid anyhow . 
as a result , every abusive bankruptcy filing impacts hard-working americans in the form of higher interest rates and increased costs of goods and service . 
our economy and the hard-working americans who sustain it should not suffer any longer from the billions of dollars in losses associated with abusive bankruptcy filings . 
mr. speaker , this legislation not only deals with abuse in the bankruptcy system ; it includes many vital consumer protections as well . 
s. 256 will provide the tools to crack down on bankruptcy petition mills , which often misrepresent the benefits and risks of bankruptcy relief . 
it will impose heightened standards of professional responsibility for attorneys who represent debtors . 
it will require certain credit card solicitations , monthly billing statements , and related materials to include important disclosures and explanatory statements on a broad range of credit terms and conditions , including introductory interest rates and minimum payments . 
the bill also helps america 's family farmers and fishermen confronting economic hard times by providing more tools to assist in their bankruptcy reorganization . 
the bill includes protections for medical patients in bankruptcy health care facilities and pro-privacy provisions that protect against the unwanted disclosure of personal information . 
there are several other critical reforms contained in this comprehensive legislation , but the limits of time prevent an exhaustive recitation . 
mr. speaker , the time for bankruptcy reform is long overdue . 
bankruptcy reform legislation has been subject to more process , more consideration , more deliberation , more debate , and more voting than virtually any other legislative item in the past decade . 
we have before us legislation that represents the culmination of a decade of legislative toil and persistence . 
it is the product of extensive bicameral and bipartisan compromise and was approved by the other body by a vote of 74 to 25 . 
we also have before us a historic opportunity to return a measure of fairness and accountability to the bankruptcy system in a manner that will curb bankruptcy abuse while rewarding the vast majority of hard-working americans who play by the rules and pay their bills as agreed upon . 
mr. speaker , i urge my colleagues to seize this opportunity to join me in supporting this legislation . 
mr. speaker , before closing , i include for the record a supplemental statement acknowledging the hard work of many members and staff who have helped make this legislation possible , as well as a summary of the principal provisions of this bill . 
mr. speaker , over the many years this legislation has been pending in the congress , many members , senators , and staff members have devoted themselves to making s. 256 a reality . 
i would like to take this opportunity to recognize these individuals . 
beginning with my colleagues in the house , i would like to mention the many contributions of the chairman of the subcommittee on commercial and administrative law ( mr. cannon ) xz4000590 for his hard work on behalf of this legislation . 
the chairman of the financial services committee ( mr. oxley ) has also been a great resource . 
i also appreciate the contributions of my colleagues on the other side of the aisle , the ranking member of the judiciary committee ( mr. conyers ) and the gentleman from virginia ( mr. boucher ) . 
former members should also be recognized for their contributions . 
bill mccollum is to be commended for being the first to introduce comprehensive bankruptcy reform and george gekas deserves our gratitude for his tireless efforts . 
in addition , i would like to mention the following staff on the judiciary committee for their contributions : phil kiko , majority committee general counsel and chief of staff ; rob tracci , chief legislative counsel and parliamentarian ; raymond smietanka , chief counsel , subcommittee on commercial and administrative law ; perry apelbaum ; david lachmann ; matt iandoli , legislative director for representative cannon ; todd thorpe , chief of staff for representative cannon ; laura vaught , deputy chief of staff for representative boucher ; jean harmann , house legislative counsel and dina ellis , counsel for the house financial services committee . 
former staffers who should also be recognized , include will moschella , joe rubin , alan cagnoli , and liz trainer . 
the vital and indispensable efforts of one staff member have uniquely contributed to the bankruptcy reform legislation we consider today . 
from her service as general counsel on the congressionally-created national bankruptcy review commission to her often behind the scenes work on bankruptcy reform legislation extending to the 105th congress , susan jensen , counsel to the judiciary subcommittee on commercial and administrative law , deserves special recognition . 
her technical expertise in a complex area of law has resulted in dramatic improvements in successive drafts of bankruptcy reform legislation and helped establish a record of legislative history that elucidates the legislation we consider today . 
her professionalism , attention to detail , and commitment to serving the house of representatives deserves the recognition and commendation of this house . 
i would also like to acknowledge the countless contributions of our colleagues in the other body . 
these include senators grassley , hatch , sessions , specter , biden and leahy . 
this legislation has also benefitted from the hard work and devoted assistance of numerous senate staff members . 
these include , rita lari , counsel for senator grassley , who has been a wonderful resource for our staff . 
in addition , the following individuals must also be acknowledged : harold kim and tim strachan , counsels for senator specter ; perry barber , rene augustine , and former staffer makan delrahim , counsels for senator hatch ; and ed pagano , chief of staff for senator summary of principal provisions of s. 256 , `` the bankruptcy abuse prevention and consumer protection act of 2005 '' abuse prevention : s. 256 instills a greater level of personal responsibility by closing various loopholes and eliminating incentives in the current bankruptcy system that encourage opportunistic consumer bankruptcy filings and abuse . 
the bill 's needs-based provisions target , for example , those debtors who have a demonstrated ability to repay their debts and channels them into a form of bankruptcy relief that requires debt repayment . 
courts , under s. 256 , are given greater powers to dismiss abusive bankruptcy cases and to punish attorneys who encourage their clients to file such cases . 
debtors who have committed crimes of violence or engaged in drug trafficking will no longer be able to use bankruptcy to hide from their creditors . 
likewise , deadbeat needs-based reforms : s. 256 implements an income and expense analysis to determine whether a debtor has a demonstrated ability to repay a significant portion of his or her debts . 
if a debtor has the ability to repay debts , he or she must either be channeled into a form of bankruptcy relief that requires repayment or risk having the bankruptcy case dismissed as an abusive filing . 
this needs-based test specifies certain expense amounts -- derived from irs expense standards and other specified expenses -- that are deducted from the debtor 's income . 
these include expenses for food , clothing , housing , and transportation as well as certain educational expenses for the debtor 's children . 
the debtor may rebut the presumption of abuse by demonstrating special circumstances warranting additional expenses or income adjustment . 
spousal and child support protections : s. 256 prioritizes the collection and payment of spousal and child support in bankruptcy cases by giving these claims the highest payment priority ( current law gives these claimants an only 7th level payment priority ) . 
the bill requires bankruptcy trustees to give child support claimants important information about the availability of state child support enforcement assistance and to notify the proper state child support enforcement authorities of the deadbeat parent 's bankruptcy filing . 
s. 256 allows various enforcement actions to be brought against a bankrupt deadbeat parent , including the withholding of his or her driver 's license , or the suspension of the debtor 's professional or occupational license . 
it also allows state child support enforcement agencies to intercept closes the `` mansion loophole '' for greedy corporate culprits : under current bankruptcy law , debtors living in certain states can shield from their creditors virtually all of the equity in their homes . 
in light of this , some debtors actually move to these states just to take advantage of their `` mansion loophole '' laws . 
s. 256 closes this loophole for abuse by requiring a debtor to reside in the state for at least 2 years before he or she can claim that state 's homestead exemption -- the current residency requirement is only 91 days ! 
the bill further reduces the opportunity for abuse by requiring a debtor to own the homestead for at least 40 months before he or she can use state exemption law -- current law imposes no such requirement . 
in addition , s. 256 requires a debtor 's homestead exemption to be reduced for to the extent attributable to the debtor 's fraudulent conversion of nonexempt assets ( e.g. , cash ) into a homestead exemption . 
most debtor protections : s. 256 requires debtors to receive credit counseling before they can be eligible for bankruptcy relief so that they will make an informed choice about bankruptcy -- its alternatives and consequences . 
the bill also requires debtors , after they have filed for bankruptcy , to participate in financial management instructional courses so they can hopefully avoid future financial distress . 
s. 256 penalizes creditors who unreasonably refuse to negotiate a pre-bankruptcy debt repayment plan with a debtor . 
the bill strengthens the disclosure requirements for reaffirmation agreements so that debtors will be better informed about their rights and responsibilities . 
in addition , s. 256 requires certain monthly credit card billing statements to include specified disclosures regarding the increased interest and repayment time associated with making minimum payments . 
the bill also requires certain protections for small business owners : under current bankruptcy law , a business can be sued by a bankruptcy trustee and forced to pay back monies previously paid to it by a firm that later files for bankruptcy protection . 
s. 256 contains provisions making it easier -- particularly for small businesses -- to successfully defend against these suits . 
promotes greater certainty in the financial market place : s. 256 reduces systemic risk in the banking system and financial marketplace by minimizing the risk of disruption when parties to certain financial transactions become bankrupt or insolvent . 
federal reserve board chairman alan greenspan says these reforms are `` extremely important. '' family farmers : s. 256 helps small family farmers facing financial distress . 
while current bankruptcy law has a specialized form of bankruptcy relief -- chapter 12 -- that is specifically designed for family farmers , its benefits for farmers are limited because of its restrictive eligibility requirements . 
the bill responds to this problem in several key respects : it more than doubles the debt eligibility limit and requires it to be periodically adjusted for inflation ; it lowers the requisite percentage of a farmer 's income that must be derived from farming operations ; and it gives farmers more flexibility with respect to how certain creditors can be repaid . 
as a result , many more deserving family farmers facing financial hard times will be able to avail themselves of chapter 12 . 
in addition , s. 256 makes chapter 12 a permanent component of the bankruptcy laws and extends the benefits of this form of bankruptcy relief to family fishermen . 
small business debtors : s. 256 addresses the special problems presented by small business debtors by instituting firm deadlines and enforcement mechanisms to weed out those debtors who are not likely to reorganize . 
it also requires the court and other designated entities to monitor these cases more actively . 
transnational insolvencies : in response to the increasing globalization of business dealings and operations , s. 256 establishes a separate chapter under the bankruptcy code devoted to transnational insolvencies . 
these provisions are intended to provide greater legal certainty for trade and investment as well promote the fair and efficient administration of these cases . 
privacy protections : under current law , nearly every item of information supplied by a debtor in connection with his or her bankruptcy case is made available to the public . 
s. 256 prohibits the disclosure of the names of the debtor 's minor children and requires such information to be kept in a nonpublic record , which can be made available for inspection only by the court and certain other designated entities . 
in addition , if a business debtor had a policy prohibiting it from selling `` personally identifiable information '' about its customers and the policy was in effect at the time of the bankruptcy filing , then s. 256 prohibits the sale of such information unless certain conditions are satisfied . 
protections for employees : s. 256 requires certain back pay awards granted as a result of the debtor 's violation of federal or state law to receive one of the highest payment priorities in a bankruptcy case . 
in addition , s. 256 streamlines the appointment of an erisa administrator for an employee benefit plan , under certain circumstances , to minimize the disruption that results when an employer files for bankruptcy relief . 
in light of the disaterous impact that bankruptcy cases like worldcom and enron have had on their employees , reforms that more than double current the monetary cap on wage and employee benefit claims entitled to priority under the bankruptcy code . 
other provisions would protect retirees in cases where chapter 11 debtors mr. speaker , i reserve the balance of my time . 
