National

Compromise reached on bankruptcy bill
Credit card debt would be harder to escape

From wire reports

WASHINGTON _ Congressional negotiators announced on Thursday that they had reached agreement on a bill that would rewrite the bankruptcy laws, making it much harder for people to escape their debts.

The agreement came late Thursday after members of a conference committee reached a compromise on the language of an abortion-rights provision that had threatened to scuttle the overall bill. The compromise will restrict the ability of anti-abortion protesters to use the bankruptcy laws to shield themselves from paying court fines resulting from protests at abortion clinics.

The overall bankruptcy bill, which has been passed by both houses of Congress by overwhelming margins, appears destined for final approval in the House and Senate, and the White House has suggested that President Bush will sign it. The House could vote on the agreement as early as today, when it is scheduled to begin a monthlong summer recess.<>

The bill would end the ability of millions of Americans to use the bankruptcy system to wipe out credit-card bills and other loans that are not secured by homes or other assets.

The legislation applies a new standard for determining whether people filing for bankruptcy should be forced to repay debts under court-approved reorganization plans rather than having them dissolved. If a debtor is found to have sufficient income to repay at least 25 percent of the debt over five years or has at least the median income for his or her state, a reorganization plan generally would be required.

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