U.S. Rep. Adam Smith made the following statement today concerning bankruptcy reform:

“Our current bankruptcy system should be reformed. As a matter of personal responsibility, people should, whenever possible, pay off the debts that they have incurred. However, the bankruptcy bill that was before the U.S. House of Representatives today was a missed opportunity to create a reform bill that both promoted personal responsibility and was fair and balanced,” said Smith. “This bill failed to close troubling loopholes, like the homestead exemptions which allow wealthy Americans to shield money in real estate and the creation of trusts where people can hide assets that can’t be touched during bankruptcy proceeding. I’m am also troubled by the growing trend in which credit card companies are actively marketing their products to those who can least afford to take on additional high-interest credit.  This legislation does little to discourage this damaging practice. The Republican House leadership failed to allow any Democratic amendments that could have offered balanced solutions for closing loopholes, protecting consumers and bolstering personal responsibility. Instead, partisan politics shaped this flawed bill and it was because of these flaws I voted against its passage today.”