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Morgan D. King
editor@BankruptcyMedia.com

Republicans in the 108th Congress launched their 2003 campaign to enact sweeping bankruptcy reform by introducing H.R. 975 into the House Judiciary Committee two weeks ago.

With Republicans in control of both houses, it would seem the skids should be greased to slide right on through and to the President’s desk. However, exhausted from four consecutive years of failure to get a major bankruptcy reform bill signed into law, many legislators and financial organizations have all but quit beating the drum. Some key senators have stated privately that they have changed their minds and no longer support the legislation, and others have vowed to filibuster the bill. And, the recently released list of Republican legislative priorities for this year did not list bankruptcy reform. Thus, some insiders are whispering that the bill will die a slow death this year in Congress.

The key Republican proponent of bankruptcy reform, House Judiciary Committee Chairman James Sensenbrenner (R-Wis.), introduced the new bill with 50 co-sponsors on February 27. The bill is identical to the one that failed to be enacted at the close of the 107th Congress, except for the controversial abortion language. Key opponents of the bill, such as Rep. Jerrold Nadler (D-N.Y.) and Rep. Mel Watt (D-N.C.) are expected to use all means to stop the legislation.

Among those leading the fight against the legislation is the National Association of Consumer Bankruptcy Attorneys (NACBA).

In re Foster, ___ F.3d ___ (9th Cir. 2003) (click case name for decision in PDF).

Debtor's chapter 13 plan provided for full payment of delinquent non-dischargeable child support. Debtor completed the plan and was granted a discharge. Subsequently, Ventura County District Attorney went after debtor for the accumulated interest that was not paid through the plan.

Held, plan could not provide for payment of interest, and creditor could collect unpaid interest following discharge. This is the majority rule. A claim for post-petition interest on a debt not dischargeable in Chapter 13 under 11 U.S.C. § 1328(a) is not part of the bankruptcy estate because such unmatured interest was not part of the debt as of the date of filing the petition. Thus, a creditor cannot insist on interest being paid through the plan. And, the Code does not explicitly prohibit collection of post-petition interest after a debtor completes a confirmed chapter 13 plan.

Nearly a hundred titles to choose from!