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Senate Rejects Bankruptcy Exemption
for Seniors
FXStreet.com
Spain
March 2, 2005
The Senate on Wednesday turned back an effort by Democrats to shield senior citizens from a proposed revamp of the bankruptcy code that would require more filers to pay off a chunk of their debts.
The Senate voted 59-40, largely along party lines, to reject an amendment that would have granted homestead exemptions that would have let seniors keep their homes when they file for bankruptcy.
Republicans said the proposed bill already offered protections for the elderly and that homestead exemptions were an issue for individual states. Democrats said the amendment, sponsored by Sen. Russ Feingold, D-Wis., would have provided needed protection to the elderly.
The bankruptcy bill would significantly alter the bankruptcy code. Under a new means test, a consumer with income above the median level for his state would possibly be required to file under Chapter 13, which requires repayment of debts, rather than Chapter 7, which allows the cancellation of debts after the forfeiture of some assets.
Democrats plan a number of amendments to change the wide-ranging bill. On Tuesday, the Senate turned back a Democratic measure that would have shielded active-duty military personnel from the proposed changes in the law.
House Republican leaders have indicated they'll bring a bill to the floor later this spring. Banks, credit-card issuers, retailers and auto firms have backed the measure.
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