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Thank you for contacting me regarding the Bankruptcy Reform bill. I appreciate hearing from you. On March 10th, the Senate passed the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 by a vote of 74-25, and the President signed the bill into law. I voted for this legislation.
The bankruptcy bill is a compromise that was reached over 8 years of work. The legislation is not perfect, but it's a good effort to improve our bankruptcy laws.
The bill permanently extends Chapter 12, which will grant Montana agriculture producers greater relief during tough times. It also ensures that parents collecting child support and
alimony payments are paid on time. We closed loopholes that millionaires have used to hide assets, and I believe that this bill makes the entire bankruptcy process easier and more fair for individuals and families who have legitimate reasons for their financial challenges. Bankruptcy is intended to be a shelter for those who find themselves with a significant, unexpected and insurmountable debt. I support providing a reasonable safety net to help them get back on their feet. It is also important that consumers are protected against overly aggressive credit marketing practices, and provided better information about the cost of credit and the consequences of excessive borrowing. Thanks again for getting in touch with your concerns about bankruptcy reform. If I can be of further assistance on this or any other matter, please don't hesitate to let me know.
With best personal regards, I am
Senator Max Baucus
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