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Mike Leavitt on Corporations

Director of the E.P.A.; former Republican UT Governor

 


Bankruptcy reform: prevent inappropriate Chapter 7 filings.

Leavitt adopted a letter to House leaders from 4 Governors:

Our economy has been setting the right kind of records in the 1990s in terms of real economic growth, low inflation, declining welfare rolls, and falling unemployment rates. During the same period, however, personal bankruptcy filings have repeatedly set the wrong kind of records, reaching new highs each of the last three years. Governors accordingly support revising federal bankruptcy laws to curb the increasing number of bankruptcy filings in our nation and to stem abuses of the bankruptcy system.

Specifically, Governors support efforts to prevent debtors from filing Chapter 7 bankruptcy in lieu of Chapter 13 when they are financially capable of repaying part or all of their unsecured debts. We also encourage Congress to place the highest possible priority on payment of domestic support obligations in bankruptcy proceedings. Preservation of states’ existing rights to determine their own standards dealing with homestead exemptions is another important provision that needs to be included in any bankruptcy legislation that Congress passes this year.

Source: National Governor's Association letter to Congress 99-NGA30 on May 5, 1999

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Page last updated: Sep 29, 2018