Letter to Congress re: Treatment of Unlimited Homestead Exemption
The National Bankruptcy Conference writes to House and Senate Judiciary Committee chairs opposing an April 2002 compromise on homestead exemption treatment, arguing instead for a hard cap as proposed in the Senate version of pending bankruptcy legislation to close the unlimited homestead loophole in six states.
- NBC supports a hard cap on homestead exemptions, such as Senate section 308 proposal, to protect bankruptcy system integrity
- NBC contends the April 23, 2002 tentative compromise fails to adequately address unlimited homestead exemptions in six states
- NBC urges Conference Committee to implement a simple, straightforward homestead exemption cap in new bankruptcy legislation
Dear Chairman Leahy and Chairman Sensenbrenner:
On behalf of the National Bankruptcy Conference, we write concerning the April 23, 2002 tentative compromise on the treatment of the unlimited homestead exemption.
The NBC has consistently supported imposition of a "hard cap" on the homestead exemption, such as that imposed by the Senate version of the pending bankruptcy legislation in section 308. We believe that such a cap is the best way to protect the integrity of the national bankruptcy system in the face of unlimited homestead exemptions in six states.
We have reviewed the recent letter to you from 66 law professors, and agree that the tentative compromise does not solve the unlimited homestead problem. If there is to be new bankruptcy legislation, we continue to urge the Conference Committee to close the homestead loophole with a simple, straightforward cap.
Sincerely,
J. Ronald Trost,
Chair National Bankruptcy Conference
cc: Hon. Rob Barr, Hon. Joseph Biden, Hon. Rick Boucher, Hon. Steve Chabot, Hon. John Conyers, Hon. Mike DeWine, Hon. Richard J. Durbin, Hon. Russ Feingold, Hon. George Gekas, Hon. Charles Grassley, Hon. Orrin Hatch, Hon. Henry Hyde, Hon. Edward M. Kennedy, Hon. Herb Kohl, Hon. John Kyl, Hon. Mitch McConnell, Hon. Jerry Nadler, Hon. Charles E. Schumer, Hon. Jeff Sessions, Hon. Lamar Smith, Hon. Melvin Watt