BEFORE US, TO CHANGE THE LAW SO IT'S NOT SO EASY TO GO INTO
           BANKRUPTCY. IN THE 20 YEARS I'VE HAD HUNDREDS OF PEOPLE TALK TO
           ME ABOUT BEING TOO EASY TO GO INTO BANKRUPTCY T OUGHT TO BE
           HARDER IN THEIR JUDGMENT. I'VE NOT HAD ONE PERSON SAY TO ME
           THAT IT OUGHT TO BE EASIER TO GET INTO BANKRUPTCY. AND I'VE HAD
           EVEN PEOPLE WHO ARE HAVE GONE THROUGH BANKRUPTCY SAYING HOW
           EASY IT IS TO GET INTO BANKRUPTCY. I THINK THE LAWS OF 1978 IS

           AT FAULT TO SOME EXTENT. I THINK THE SITUATION THAT WE HAVE
           WITH CONGRESS WITH 30 YEARS OF DEFICIT SPENDING. GOVERNMENT
           DOESN'T HAVE TO LIVE WITHIN ITS INCOME, SENDS A SIGNAL TO THIS
           -- TO THE PEOPLE OF THIS COUNTRY THAT IT'S ALL RIGHT FOR
           INDIVIDUALS TO LIVE BEYOND THEIR INCOME AND AVOID PAYING FOR
           IT. I THINK WE'VE HAD A GENERAL LACK OF SHAME OR PERSONAL
           RESPONSIBILITY. THAT USED TO BE ASSOCIATED WITH PAYING BILLS OR
           NOT PAYING BILLS. ANTHE FILING OF BANKRUPTCY. THAT'S NO LONGER

           THE SITUATION, ALTHOUGH THAT CAN BE SOMEWHAT TO BLAME FOR
           GOVERNMENT NOT SETTING A GOOD EXAMPLE IN THIS AREA. BUT ALSO I
           THINK THERE'S MORE THAN JUST THAT AS THE DOWNFALL THAT WE'VE
           HAD OF PERSONAL RESPONSIBILITY. AND WE'VE HEARD LOTS OF
           SPEECHES ABOUT HOW THE CREDIT INDUSTRY, PARTICULARLY THE CREDIT
           CARD INDUSTRY, HAS NOT BEEN VERY CAREFUL IN THE NUMBER OF
           REQUESTS THEY'VE GRANTED FOR BANKRUPTCY, OR JUST THE

           WILLY-NILLY APPROACH. AND I KNOW THEY WOULD SAY IT'S NOT
           WILLY-NILLY. IT'S A VERY CAREFUL STUDY THEY HAVE OVER WHO OUGHT
           TO BE MAILED A CREDIT CARD OR NOT MAILED A CREDIT CARD. BUT AS
           A PRACTICE MATTER, THEY'VE BEEN -- BUT AS A PRACTICAL MATTER,
           THEY'VE BEEN PRETTY DARNED FLUID WITH THE NUMBER OF CREDIT
           CARDS THAT'S BEEN GOING THROUGH THE MAIL. AND ALL OF THESE ARE
           REASONS WHY WE HAVE THIS LEGISLATION BEFORE US. ALL OF THESE
           ARE REASONS WHY THIS BILL WAS VOTED OUT OF COMMITTEE BY A VOTE
           OF 16-2. ALL OF THESE ARE REASONS WHY A VERY STRONG BILL PASSED

           THE HOUSE OF REPRESENTATIVES BY A VETO-PROOF MARGIN. AND ALL OF
           THESE I THINK ARE ARE REASONS THAT HOPEFULLY ON TUESDAY OR
           WEDNESDAY OF THIS WEEK WE PASS THIS BILL BY A VERY SUBSTANTIAL
           MARGIN. BUT AS I INDICATED, WE HAVE AS OF THE AMENDMENTS WE'LL
           BE VOTING ON TOMORROW THE AMENDMENT BY THE SENATOR FROM
           WISCONSIN. IN MY EARLIER STATEMENTS ON THE SENATE FLOOR, THEN,
           I HAVE ALLUDED TO THE ROLE OF THE OVERLY AGGRESSIVE BANKRUPTCY

           LAWS PLAY IN FULL MEANTING THE CURRENT CRIES IN OUR BANKRUPTCY
           SYSTEM. LAST FRIDAY IT WAS, SENATOR FEINGOLD OFFERED AN
           AMENDMENT WHICH WOULD INSULATE BANKRUPTCY LAWYERS FROM FINES
           WHEN THEY ENCOURAGE BANKRUPTCY ABUSE. AS REPORTED BY THE
           JUDICIARY COMMITTEETHE CONSUMER BANKRUPTCY REFORM ACT FINES --
           IN OTHER WORDS, PENALIZES -- BANKRUPTCY LAWYERS WHO STEER
           HIGH-INCOME PEOPLE WHO CAN REPAY THEIR DEBT INTO CHAPTER 7 7.

           UNTIL THE BILL AND THE NARROW CIRCUMSTANCE WHERE A CHAPTER 7
           TRUSTEE IS SUCCESSFUL IN GETTING A CHAPTER 7 CASE DISMISSED OR
           CONVERTED TO CHAPTER 13, THE LAWYER FOR HIGH-INCOME BANKRUPTS
           WILL BE FINED IF HIS OR HER CASE WAS SUBSTANTIALLY JUSTIFIED.
           THAT'S OUR BILL. THIS FINE IN THIS BILL WILL REIMBURSE THE
           CHAPTER 7 TRUSTEE FOR EXPENSES INCURRED WHILE DETECTING ABUSES

           OF THE BANKRUPTCY SYSTEM. I THINK THAT THIS SHOULD TELL ANY
           REASONABLE PERSON TO SAY THAT LAWYERS WHO FILE BANKRUPTCY CASES
           WHICH AREN'T SUBSTANTIALLY JUSTIFIED OUGHT TO BE REQUIRED AND
           WILL BE REQUIRED TO HELP DEFRAY THE COSTS OF THESE FRIVOLOUS
           CASES. THAT'S ALL THIS BILL DOES. AND SENATOR FEINGOLD WANTS TO
           CUT THIS REASONABLE EFFORT TO CONTROL A BANKRUPTCY BAR WHICH IS
           SERIOUSLY OUT OF CONTROL. MR. PRESIDENT, IN ORDER FOR MY
           COLLEAGUES TO UNDERSTANDS THE IMPORTANCE OF IMPOSING SOME

           REASONABLE CONTROLS ON THE CONDUCTS OF BANKRUPTCY LAWYERS, I
           WANT TO GIVE A LITTLE BACKGROUND ON THE CONDUCT OF BANKRUPTCY
           LAWYERS. TODAY, MANY LAWYERS WHO SPECIALIZE IN BANKRUPTCY VIEW
           BANKRUPTCY AS AN OPPORTUNITY TO MAKE BIG MONEY FOR THEMSELVES.
           AND THIS PROFIT MOTIVE CAUSES BANKRUPTCY LAWYERS TO PROMOTE
           BANKRUPTCY AS THE ONLY OPTION WHEN A FINANCIALLY-TROUBLED
           CLIENT HAS AN OBVIOUS ABILITY TO REPAY HIS OR HER DEBT. IN
           OTHER WORDS, THIS PROFIT MOTIVE CREATES A REAL CONFLICT OF

           INTEREST. WHERE BANKRUPTCY LAWYERS PUSH PEOPLE INTO BANKRUPTCY
           WHO DON'T BELONG THERE SIMPLY BECAUSE THEY WANT TO MAKE A QUICK
           BUCK. AS ONE OF THE MEMBERS OF THE NATIONAL BANKRUPTCY
           COMMISSION NOTED IN THE COMMISSION'S 1997 REPORT, MANY WHO MAKE
           THEIR LIVING OFF THE BANKRUPTCY PROCESS HAVE FORGOTTEN THAT
           DECLARING BANKRUPTCY SHOULD HAVE A MORAL DIMENSION. AS I'VE
           ALREADY SAID, THE CONSUMER BANKRUPTCY REFORM ACT CONTAINS
           REASONABLE PENALTIES FOR LAWYER MISCONDUCT. THESE PENALTIES

           WILL CAUSE LAWYERS TO THINK TWICE BEFORE THEY WILLY-NILLY CART
           OFF THEIR CLIENT TO BANKRUPTCY COURT AND POCKET THE PROFIT.
           BECAUSE, YOU SEE, BANKRUPTCY LAWYERS GET PAID AHEAD OF ANYBODY
           ELSE IF THERE ARE ASSETS, OR OBVIOUSLY THEY CHARGE BEFORE
           THEY'RE GOING TO HELP YOU YOU IF YOU WANT -- HELP YOU IF YOU
           WANT TO USE THEM. SOME LAWYERS OPERATE WHAT ARE KNOWN AS
           BANKRUPTCY MILLS. THESE BANKRUPTCY MILLS ARE NOTHING MORE THAN

           PROCESSING CENTERS FOR BANKRUPTCY. THERE IS LITTLE OR NO
           INVESTIGATION DONE AS TO WHETHER AN INDIVIDUAL ACTUALLY NEEDS
           BANKRUPTCY PROTECTION OR WHETHER OR NOT A PERSON IS ABLE TO AT
           LEAST PARTIALLY REPAY SOME OF HIS DEBT. RECENTLY, ONE OF THESE
           BANKRUPTCY ATTORNEYS FROM TEXAS WAS SANCTIONED IN BANKRUPTCY
           COURT. ACCORDING TO THE COURT, THIS ATTORNEY HAD VERY LITTLE
           KNOWLEDGE OF BANKRUPTCY LAW BUT ADVERTISED EXTENSIVELY IN THE
           YELLOW PAGES AND ON TELEVISION. APPARENTLY HIS ADVERTISING

           WORKED BECAUSE HE FILED ABOUT 100 NEW BANKRUPTCY CASES A MONTH.
           MOST OF THE WORK WAS DONE BY LEGAL ASSISTANTS WITH VERY LIMITED
           TRAINING. THE COURT CONCLUDED THAT THE ATTORNEY'S SERVICES --
           QUOTE -- "AMOUNTED TO LITTLE MORE THAN A LARGE-SCALE PETITION
           PREPARER SERVICE FOR WHICH HE RECEIVES AN UNREASONABLY HIGH
           FEE." THE PRACTICES OF THESE BANKRUPTCY MILLS ARE SO DECEPTIVE
           AND EAZY THAT LAST YEAR, THE FEDERAL TRADE COMMISSION WENT SO

           FAR -- OUR FEDERAL TRADE COMMISSION -- ISSUED A SECURABLE ALERT
           WARNING, CONSUMERS OF MISLEADING ADS PROMISING DEBT
           CONSOLIDATION. SO, MR. PRESIDENT, I THINK THAT THERE'S A
           WIDESPREAD RECOGNITION THAT BANKRUPTCY LAWYERS ARE PRAYING ON
           UNSOPHISTICATED CONSUMERS WHO NEED COUNSELING AND HELP -- IN
           HELPING SET UP A BUDGET AND WHO DO NOT NEED TO DECLARE
           BANKRUPTCY. BANKRUPTCY LAWYERS ARE THE FUEL WHICH MAKES THE

           ENGINES OF THE BANKRUPTCY MILLS RUN. IT'S NOT SURPRISING THEN,
           MR. PRESIDENT, THAT THE BANKRUPTCY LAWYERS ARE LEADING THE
           CHARGE AGAINST THIS BANKRUPTCY REFORM LEGISLATION. I WANT TO
           POINT SO SOME OTHER EVIDENCE OF LAWYERS PLAYING A CRIME ROLE IN
           THIS EFFORT TO GET PEOPLE INTO BANKRUPTCY AND TO AVOID THE
           PAYMENT OF DEBT. WE'VE HEARD COMPLAINTS FROM SOME ON THE SENATE

           FLOOR PREVIOUSLY ABOUT WHETHER OUR BILL DOES ENOUGH TO PROTECT
           CHILD SUPPORT AND ALSO TO PROTECT ALIMONY DURING BANKRUPTCY
           PROVISIONS. -- BANKRUPTCY PROCEEDINGS. I'VE ALREADY SPOKEN TO
           THAT TOPIC AT ANOTHER TIME, BUT FOR NOW I WANT TO POINT OUT
           THAT SOME BANKRUPTCY LAWYERS ACTUALLY ADVERTISE THAT THEY CAN
           HELP DEADBEAT DADS GET OUT OF THEIR CHILD SUPPORT AND OTHER
           MARITAL OBLIGAONS. ONE BANKRUPTCY LAWYER HAS EVEN WRITTEN A

           BOOK ENTITLED -- AS YOU CAN SEE HERE -- "DISCHARGING MARITAL
           OBLIGATIONS IN BANKRUPTCY," BY JAMES P. CAHER, ESQUIRE. I THINK
           IT'S OUTRAGEOUS, MR. PRESIDENT, THAT BANKRUPTCY LAWYERS ARE
           HELPING DEADBEATS TO CHEAT DIVORCED SPOUSES OUT OF ALIMONY AND
           TO CHEAT CHILDREN OUT OF CHILD SUPPORTS. THIS IS A RECIPE FOR
           PROMOTING POVERTY AND HUMAN MISERY. THOSE WHO WANT TO HELP THE

           COLLECTION OF CHILD SUPPORT DOING PRUPS PROCEEDINGS -- DURING
           BANKRUPTCY PROCEEDINGS SHOULD JOIN ME IN REJECTING THE FEINGOLD
           AMENDMENT TO PROTECT BANKRUPTCY LAWYERS. THOSE WHO ARE
           CONCERNED ABOUT PROTECTING CHILD SUPPORT SHOULD JOIN ME IN
           ENSURING THAT LAWYERS WHO ENGAGE IN PREDATORY CONDUCT ARE
           SUBJECT TO STIFF FINES. THOSE WHO ARE CONCERNED ABOUT
           COLLECTING CHILD SUPPORT SHOULD JOIN ME FROM MOVING CHILD
           SUPPORT FROM NUMBER 7 IN THE BANKRUPTCY PRIORITY LIST TO NUMBER
           1. THIS IS THE ONLY WAY TO GET PEOPLE'S ATTENTION. THIS IS THE

           ONLY WAY TO RESTORE PROFESSIONALISM TO THE BANKRUPTCY BAR. LET
           ME TELL YOU YOU, MR. PRESIDENT, HOW FAR THESE PRACTICES HAVE
           GONE OF FIRST I WOULD ASK CONSENT TO ENTER INTO THE
           "CONGRESSIONAL RECORD" AN ARTICLE FROM THE CONSUMER BANKRUPTCY
           NEWS DATE JUNE 18 OF THIS YEAR.
           

           THE PRESIDING OFFICER: IS THERE OBJECTION?
           WITHOUT OBJECTION, SO ORDERED.
           

           MR. GRASSLEY: IN THIS ARTICLE, BANKRUPTCY LAWYERS ARE ADVISED
           TO SEND OUT LETTERS TO ANYONE WHO HAS VISITED THEM RECENTLY
           ASKING ABOUT BANKRUPTCY. THIS FORM LETTER ENCOURAGES PEOPLE TO
           DECLARE BANKRUPTCY, BECAUSE IF CONGRESS PASSES BANKRUPTCY
           REFORM, BANKRUPTCY WILL BE MUCH MORE DIFFICULT, WILL BE MUCH
           MORE EXPENSIVE AND PROBABLY EVEN EMBARRASSING. WELL, I HOPE
           THIS PILL DOES MAKE BANKRUPTCY MORE EMBARRASSING AND MORE
           DIFFICULT DIFFICULT. IN FACT, I PLEAD GUILTY THAT THAT'S A

           MOTIVE BEHIND OUR LEGISLATION. THE AMERICAN PEOPLE WANT PEOPLE
           WHO VOLUNTARILY INCUR DEBT TO PAY THOSE DEBTS AS AGREED.
           BANKRUPTCY SHOULD BE DIFFICULT DIFFICULT, AND THE MORAL STIGMA
           THAT USED TO BE ASSOCIATED WITH BANKRUPTCY OUGHT TO BE
           RESURRECTED. DO WE SAY THAT NEVER IS ANYBODY ENTITLED TO A
           FRESH START?
           NO, YOU NEVER SAY NEVER. WE HAVEN'T IN 100 YEARS. THE
           BANKRUPTCY CODE -- THE NATIONAL BANKRUPTCY CODE IS 100 YEARS

           OLD FROM WHEN IT WAS FIRST PASSED. THERE'S ALWAYS BEEN A
           CONCEPT THAT BECAUSE OF NATURAL DISASTER, MAYBE BECAUSE OF A
           LOT OF ILLNESS, MAYBE EVEN IN SOME CASES BECAUSE OF DIVORCE.
           BUT THINGS BEYOND YOUR CONTROL THAT YOU OUGHT TO HAVE A FRESH
           START. AND WE DO NOT DETRACT IN THIS LEGISLATION FROM THAT

           100-YEAR TRADITION. BUT WE DO SAY NO TO BANKRUPTCY LAWYERS WHO
           ADVISE THIS WAY OR BANKRUPTCY LAWYERS WHO SEND OUT NOTICES THAT
           SAY YOU BETTER FILE FOR BANKRUPTCY RIGHT NOW BECAUSE CONGRESS
           MIGHT PASS A BILL AND MAKE IT MORE DIFFICULT TO DO. OR WE
           RESPOND POSITIVE ACTIVELY -- POSITIVELY TO THE F.T.C. SENDING
           OUT A WARNING TO PEOPLE
           
           PEOPLE: BEWARE OF PEOPLE IN THE BANKRUPTCY BAR WHO ARE NOT

           ACTING IN A RESPONSIBLE MANNER. I'LL GIVE YOU ANOTHER EXAMPLE
           WHAT'S WRONG WITH OUR BANKRUPTCY SYSTEM. A FEW WEEKS AGO "THE
           WAINGTON TIMES" QUOTED A LOCAL BANKRUPTCY ATTORNEY ADVISING HIS
           CLIENTS -- QUOTE -- "ANYONE WHO'S GOING TO FILE, BETTER DO IT
           NOW, GET IN WHILE THE GETTING'S GOOD." WHAT'S HAPPENED TO THE
           NOTION OF BANKRUPTCY THEN AS A LAST RESORT. WHAT'S HAPPENED
           THEN TO ANY SENSE OF PERSONALITY RESPONSIBILITY?

           HOW CAN ANYONE DESCRIBE BANKRUPTCY AS "GETTING IN WHILE THE
           GETTING'S GOOD"?
           WELL, MR. PRESIDENT, THE GETTING MAY BE GOOD FOR THE LAWYERS
           WHEN SOMEONE ELSE FILES BANKRUPTCY. BUT THE REST OF US HAVE TO
           PAY THE PRICE $40 BILLION A YEAR COST. $400 PER FAMILY OF FOUR.
           THAT MEANS ANY FAMILY OF FOUR IS PAYING $400 MORE EVERY YEAR

           FOR INCREASED COSTS OF GOODS AND SERVICES BECAUSE THERE'S NO
           FREE LUNCH WHEN IT COMES TO BANKRUPTCY. SOMEBODY PAYS. THE
           CONSUMERS OF AMERICA ARE PAYING. IT'S A HIDDEN TAX. OUR BILL
           WILL NEVER DO AWAY COMPLETELY WITH THAT HIDDEN TAX TAX. BUT
           THAT BILL -- THIS LEGISLATION WILL REDUCE THAT HIDDEN TAX AND
           HOPEFULLY BE A SMALL STEP TOWARDS THE REESTABLISHMENT OF THE

           PRINCIPLE OF PERSONAL RESPONSIBILITY. SO THE REST OF US HAVE TO
           PAY THE PRICE. AND THIS KIND OF ATTITUDE ABOUT BANKRUPTCY
           REPRESENTING SOME WHAT'S WRONG WITH OUR BANKRUPTCY LAWS AND WHY
           THE CURRENT LAWS NEED TO BE CHANGED CHANGED. NOT ONLY DO THE
           CURRENT PRACTICES OF BANKRUPTCY LAWYERS DO A DISSERVICE TO OUR
           CLIENT. THEY ALSO CHEAT SOCIETY AS A WHOLE. THE INTEGRITY OF
           THE BANKRUPTCY SYSTEM DEPENDS IN PART UPON THE HONESTY AND THE

           COMPETENCE OF BANKRUPT LAWYERS. CONSUMER BANKRUPTCY OH FORM ACT
{END: 1998/09/21 TIME: 14-45 , Mon.  105TH SENATE, SECOND SESSION}