House Panel OKs Bankruptcy Overhaul Bill

Legislation to overhaul personal bankruptcy laws, supported by the credit card industry and opposed by consumer groups, was approved by the House Judiciary Committee. After several days of debate on what has become a highly charged political issue, the panel voted, 18-10, to send the GOP-backed bill to the full House. The far-reaching bill would, among other things, establish a “needs” test to determine how much debt relief people filing for bankruptcy protection should receive and how much they are able to repay. A similar measure is pending in the Senate. The Clinton administration, which supports some changes in the bankruptcy laws, is threatening to veto the current legislation.