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Panel Sends Bankruptcy Reform Bill to House

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Associated Press

Legislation that would make it harder for people to erase credit card and other debts in bankruptcy court was adopted by the House Judiciary Committee on a 19-8 vote, with the majority Republicans prevailing. The bill goes to the full House. Democratic lawmakers failed to get amendments attached to the bill that would, for example, exempt people with very low incomes and add protection for single women with children seeking support payments from bankrupt fathers. If the bankruptcy overhaul bill, being pushed by the banking and credit card industries, gets through Congress, it probably will be signed by President Bush. It was passed by Congress last year, but was vetoed in December by President Clinton, who said it hurt ordinary people and working families who fall on hard times. The bill has been opposed by consumer groups and unions. The Senate Judiciary Committee was drafting its own version of the legislation.

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