House Passes Bankruptcy Reform Legislation

The House on April 14, 2005, by a vote of 302 to 126, approved the Bankruptcy Abuse and Prevention and Consumer Protection Act of 2005. The Senate passed the legislation (S. 256) on March 10, 2005. Included in the tax title of the legislation are a number of provisions addressing various aspects of the treatment under the bankruptcy laws of tax obligations, claims and liens. Also addressed in the consumer protection title of the legislation is protection for tax-favored retirement and education funds. The legislation now goes to the President for his expected signature.