NACBA ENCOURAGED BY SENATOR ELIZABETH WARREN’S REINTRODUCTION OF THE CONSUMER BANKRUPTCY REFORM ACT

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Krista D’Amelio, Director of Government Affairs, NACBA, krista.damelio@nacba.com

Washington, DC- The National Association of Consumer Bankruptcy Attorneys (NACBA) acknowledges the leadership of Senator Elizabeth Warren and House Judiciary Committee Ranking Member Jerry Nadler, along with the efforts of co-sponsors Senator Sheldon Whitehouse and Representative Pramila Jayapal, for their continued advocacy on behalf of consumer debtors. NACBA is encouraged by their reintroduction of the Consumer Bankruptcy Reform Act, which aims to address longstanding challenges within the bankruptcy system.

NACBA President Richard Nemeth stated, “The Consumer Bankruptcy Reform Act introduces critical discussions about the need for modernizing bankruptcy laws to ensure fairness and efficiency for consumer debtors. NACBA appreciates the effort to tackle these issues and will closely evaluate the bill’s provisions.” Among the improvements are:

• restoring the dischargeability of student loans, a much-needed reform in light of the burden student loan debt places on debtors and the economy;

• reducing the cost and improving the efficiency of bankruptcy relief;

• improving debtors’ ability to retain their homes and modest personal property by creating updated fair federal exemptions; and

• saving homes from foreclosure by properly allowing for the modification of residential mortgages and treating those obligations like other secured debts, where the secured creditors are paid the value of the collateral over time.

As with all comprehensive bankruptcy reform proposals, NACBA is committed to conducting a thorough review of the bill’s many provisions and potential consequences. The association looks forward to providing constructive feedback that reflects the knowledge and experience of its members who work directly with consumer debtors.

President Nemeth added, “NACBA shares Senator Warren and Ranking Member Nadler’s goal of improving the bankruptcy system to better serve those in financial distress and that now is the time to make the improvements to the Bankruptcy Code that have long been needed. We appreciate the dialogue this bill initiates and will remain actively engaged in the process.”

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