Bankruptcy as we know it could soon become a thing of the past

The Senate is debating a new law to make getting out from under credit card and other debt harder. Debate on this issue has gone on for years but supporters say this time it will pass.

Congress Debating Bankruptcy-Limiting Bill

WASHINGTON (AP) -- Escaping credit card debt and other bills by declaring bankruptcy will be tougher if legislation being debated in the Senate passes Congress as its supporters predict.

President Bush called the proposed revisions of the nation's bankruptcy laws "commonsense reforms" that will curb abuses. In the House, the chairman of the Judiciary Committee, Rep. James Sensenbrenner, R-Wis., has proposed identical legislation.

Senate Democrats, many of whom support a bankruptcy overhaul but oppose the bill as written, have prepared scores of amendments that would, for example, protect employees of bankrupt companies and exempt military personnel from new restrictions on filing for bankruptcy.