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AFSA HAILS SENS. HEFLIN AND GRASSLEY'S EFFORT TO REVIEW CURRENT BANKRUPTCY CODE

AFSA HAILS SENS. HEFLIN AND GRASSLEY'S EFFORT TO REVIEW CURRENT
 BANKRUPTCY CODE
 WASHINGTON, Nov. 19 /PRNewswire/ -- "Steps taken today by Senator Heflin and Senator Grassley to review the 1978 Bankruptcy Code are important ones and have come at a most crucial time," said Frank M. Salinger, American Financial Services Association vice president, and director of government affairs.
 Salinger was commenting today on a bill introduced by Sens. Howell Heflin (D-Ala.) and Charles Grassley (R-Iowa) which addresses, among other issues, establishing a new National Bankruptcy Review Commission. The legislation was sparked by the dramatic rise in personal bankruptcy filings that have occurred over the past five years. At the current rate of increases, it is believed close to 1 million personal bankruptcy filings will occur during 1991.
 AFSA, as part of the National Consumer Bankruptcy Coalition, has sought congressional review of the code and has worked with Heflin and Grassley in drafting new bankruptcy legislation. "The National Consumer Bankruptcy Coalition looks forward to continuing to work with Senators Heflin and Grassley on this important legislation," Salinger said.
 According to Salinger, AFSA applauds, in particular, Title III of the bill, which addresses individual debtors. The title encourages more Chapter 13 filings, or "wage earner plans," allowing for partial or full repayment of debt owed. Currently, most debtors are filing under Chapter 7, which allows debtors to dismiss all but a small percentage of their debts. Title III would allow those filing under a Chapter 7 to be informed of other alternatives, including Chapter 13. This, according to Salinger, is not being done on a regular basis. In addition, Title III would ensure all debtors are made aware of the consequences of declaring bankruptcy.
 "It is AFSA's strong belief that efforts today by both Senator Heflin and Grassley will do much to improve the current system. This is important legislation and it will among other things, help to keep debtors informed of all options available. We commend them," Salinger concluded.
 The American Financial Services Association is the national trade association for the providers of financial services to consumers and small businesses.
 -0- 11/19/91
 /CONTACT: Judy Kent of the American Financial Services Association, 202-296-5544/ CO: American Financial Services Association ST: District of Columbia IN: FIN SU: LEG TW-MH -- DC024 -- 5098 11/19/91 16:24 EST
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Date:Nov 19, 1991
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