Senate Passes Chapter 12 Extension, Bill Goes to President

The Senate unanimously approved a House bill (H.R. 1914) to temporarily and retroactively re-enacting Chapter 12 for four more months. The President has indicated he will sign the bill.  Senate Judiciary Chairman Patrick Leahy (D-Vt.) communicated support for renewing chapter 12, stating  "It is time for Congress to make chapter 12 a permanent part of the bankruptcy code."  Leahy said that he was hopeful that passage of the latest 12 bill "will make it clear to all that the Senate does not have to pass a mammoth bankruptcy reform bill to provide family farmers with bankruptcy protection." Leahy further added that he believes the Senate's action should halt any efforts to use chapter 12 as bargaining leverage with respect to the bankruptcy reform legislation.