Financial measure pleases Cannon
"Economic losses from bankruptcy lead to higher prices on goods and services for all of us," Cannon said. Today we strengthened the integrity of the bankruptcy process and helped ensure that Americans understand that bankruptcy should be the last resort for people who really need it, not a financial planning tool."
Cannon's work on the legislation was rewarded when he was invited to join a leadership ceremony with House Speaker Dennis Hastert, R-Ill., and Senate Majority Leader Bill Frist, R-Tenn., celebrating the passage of the bill.
Rep. Jim Matheson, D-Utah, bucked his party leadership and voted with the majority, saying, "While it is important to provide protections for consumers in debt and those with legitimate bankruptcy claims, the current system is broken."
Matheson pointed out that personal bankruptcy rates increased 400 percent over the past 20 years, and that last year Utah ranked No. 1 in the nation in terms of bankruptcy filings. Matheson said he could support the legislation because it gives priority to payment of child support and alimony, and it protects tax-exempt retirement savings accounts and education-savings-account deposits made at least one year before the filing.
Rep. Rob Bishop, R-Utah, also voted in favor the bill, saying, "Our current bankruptcy system is broken and needs to be fixed. This bipartisan bill reforms the framework, providing for consumer protections while cracking down on those who abuse the system."
The Senate earlier passed the legislation with both Utah senators voting in favor.
"Fundamental fairness has won the day," said Sen. Orrin Hatch, R-Utah.
"Bankruptcy claims have gotten out of control over the last 25 years, and this effort was delayed and obstructed far too long. We have all been paying for the abuses of the bankruptcy system through what I like to call a hidden bankruptcy tax. Well, one day before tax day, it looks like all American taxpayers are about to get a break."
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