Bankruptcy Reform Act

The Consumer Bankruptcy Reform Act (SB 1301, HR 3150) would reverse nearly 100 years of giving child support and spousal support “debt collection priority” over credit card debt after bankruptcy.

Women trying to collect money from former spouses would find that their child support and alimony would no longer be paid before credit card debt. Women would be hard-pressed to compete with banks and other creditors for limited funds.

In the past three years, more than a million women heading their own households have filed for bankruptcy. Women who file for bankruptcy after having been recently divorced often do so in an effort to stabilize their income. Traditional bankruptcy legislation enables these women to pay rent and buy food for their families by postponing or erasing credit card and other debt payments they cannot pay.

The Consumer Bankruptcy Reform Act will force these women to choose credit card debt over their family’s well-being. Recently separated or divorced women are often left with insufficient resources and file bankruptcy at a 300% greater rate than married or single women.

The U.S. Senate will soon consider the Consumer Bankruptcy Reform Act. Contact your senators. Urge them to protect women and families who struggle with debt by opposing SB 1301. Help spread the word. Talk with friends and spread this alert throughout the community.

RUTH ANN COOPER

Newbury Park

Ventura County Letters