Chairman Nadler Applauds Committee Passage of Bankruptcy Protection Bills
Washington, September 30, 2020
Washington, D.C. – Today, the House Judiciary Committee successfully passed H.R. 7370, the “Protecting Employees and Retirees in Business Bankruptcies Act of 2020” and H.R. 2648, the “Student Borrower Bankruptcy Relief Act of 2019,” legislation introduced by Chairman Jerrold Nadler (D-NY) that would expand bankruptcy protections for workers, retirees, and students. The bills now head to the House floor for a full vote in the U.S. House of Representatives.
“I am extremely proud that my legislation to expand bankruptcy protections for workers, retirees, and anyone with student loan debt was passed by the Judiciary Committee today,” said Chairman Nadler. “As the COVID-19 pandemic has unleashed a record number of corporate bankruptcies, the Protecting Employees and Retirees in Business Bankruptcies Act will protect the wages and benefits of essential workers, ensuring that corporations cannot profit off of this disaster. Additionally, the Student Borrower Bankruptcy Relief Act will aid the millions burdened by student loan debt by providing them the option of obtaining meaningful bankruptcy relief. These dueling crises have laid bare the deep inequalities in our society. We must ensure that working people get the fair deal that the bankruptcy laws were always supposed to provide, and that all Americans are able to invest in their education and then go on to live quality lives without the cloud of rising debt hanging over their heads.”
H.R. 7370, the Protecting Employees and Retirees in Business Bankruptcies Act of 2020, would protect the interests of workers and retirees in the Chapter 11 bankruptcy process. It also makes it more difficult for employers to reject collective bargaining agreements and reduce employee benefits during reorganization, and it explicitly clarifies that the purpose of Chapter 11 bankruptcy is to preserve jobs to the maximum extent possible. The bill was voted out of Committee by a vote of 20-10. Read more here.H.R. 2648, the Student Borrower Bankruptcy Relief Act, would allow student loan debt to be discharged in bankruptcy, just like nearly all other forms of consumer debt. The bill was voted out of Committee by a vote of 18-5. Read more here.