WASHINGTON, D.C. On Wednesday, September 26, 2018 NACBA Legislative Committee Member, John Rao, testified before the House Judiciary Subcommittee on Regulatory Reform, Commercial and Antitrust Law on H.R. 3553 “Bankruptcy Administration Improvement Act of 2017”. In addition to representing NACBA members and their clients, Rao spoke on behalf of the low income clients of the National Consumer Law Center (NCLC). The hearing was an opportunity for witnesses to provide their insight and recommendations for increasing compensation for Chapter 7 Trustees.
Rao’s testimony made clear that over the years NACBA and NCLC have supported increased compensation for chapter 7 Trustees, and laid out recommendations for alternative funding methods that would not serve as additional burdens for individual debtors who are experiencing financial hardship. Rao’s statements were supported and highlighted in Ranking Member of the Subcommittee David Cicilline’s (D-RI) opening remarks. Specifically Congressman Cicilline reiterated to the Subcommittee Rao’s comments that: “consumers in financial distress typically live hand-to-mouth and have no savings they can rely upon.”