Bankruptcy bill near Senate passage

updated 9:17 p.m. ET March 9, 2005

WASHINGTON - The Senate marched Wednesday toward passage of landmark legislation making it harder to erase medical bills, credit card charges and other debts in bankruptcy, rebuffing attempts by Democrats to soften the bill’s effect and restrict practices of the credit industry.

In a series of near-party-line votes, the Senate quickly dispensed with several Democratic amendments. Some of them targeted credit card companies, which have been key champions of the bankruptcy overhaul legislation and are accused by critics of granting credit irresponsibly.

Other Democratic proposals aimed to carve out exceptions for some categories of people from the new requirements of the bankruptcy bill.

“The bankruptcy courts are filled with cases of hard-working single mothers who were pushed over the financial brink because they failed to get the child support they deserve,” said Sen. Edward M. Kennedy, D-Mass., author of an amendment addressing single parents. “Yet this bill would only tighten the screws, looking to squeeze out a few more dollars for the credit card companies.”

The legislation, which vaulted its last major Senate hurdle on Tuesday, would constitute the most sweeping overhaul of U.S. bankruptcy laws in a quarter-century.

Senate passage this week and likely House approval of the bill next month would deliver to President Bush the second of his pro-business legislative priorities since Republicans increased their majorities in both chambers in November’s elections.

Congress sent Bush a law last month placing most large multistate class action lawsuits under federal court jurisdiction, making it harder for plaintiffs to join together and win multimillion-dollar judgments in state courts.

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