HR 975, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2003, passed the House on March 19, 2003, with a vote of 315 to 113. Sponsored by Judiciary Committee Chairman James Sensenbrenner, R-Wis., HR 975 has the backing of 89 co-sponsors. Once again, legislation to reform the bankruptcy laws enjoys overwhelming bi-partisan support.

Just as previous versions of the bill, the proposed legislation would strengthen the means tests to direct wealthier debtors into Chapter 13 repayment plans instead of allowing their debts to be eliminated under Chapter 7 of the federal Bankruptcy Code.

Since its passage in the House, the bill has lost some of its momentum due to the Senate's lack of activity to get the bill passed from committee to the floor and on to Conference Committee. At the same time, AFSA and other proponents of bankruptcy reform have had positive conversations with staff members for the Senate leadership—and remain optimistic that the Senate will act on the proposed legislation before the year's end.

If the Senate does pass the legislation before the end of the year, Congress will have all of 2004 to work on the conference report and send the legislation to the President for his signature.