Columbia, Maryland: June 6, 2012‚ÄĒThe National Association of Credit Management (NACM) released the 2012 edition of its Legislative Introduction and Position Brief today. Appearing in the June issue of the association‚Äôs flagship publication, Business Credit, the comprehensive document serves as a historical record of NACM‚Äôs more than 100 years representing the interests of unsecured trade creditors on Capitol Hill.
After playing an important role in last year‚Äôs repeal of the 3% withholding tax, which would‚Äôve been charged on most government contracts on a local, state or federal basis, NACM has thrown the full weight of its resources behind the cause of reforming the Bankruptcy Code, and specifically its preference provisions.
Despite the changes made in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), preference abuse is still prevalent. For many years now, NACM has sounded the alarm over the Code‚Äôs broken and fundamentally unfair preference provisions, which have failed to function as originally intended. ‚ÄúThe reality is that trade creditors face a double jeopardy: they lose funds due to the bankruptcy and are also forced to repay funds already collected,‚ÄĚ says NACM in the brief. ‚ÄúThis simple fact has put some small companies out of business.‚ÄĚ
NACM‚Äôs position is that the burden of proof in a preference claim should be shifted from the creditor to the trustee, and the 2012 Legislative Introduction and Position Brief features a simpler, updated approach to accomplishing this through legislation. The document also features NACM‚Äôs numerous other bankruptcy-related priorities.
Another new addition to this year‚Äôs brief is a section pertaining to NACM‚Äôs international division, the Finance, Credit and International Business Association (FCIB). FCIB‚Äôs vital position as a supporter of exports has become ever more important in the wake of President Barack Obama‚Äôs National Export Initiative (NEI), which is now in its second year and sets a goal of doubling U.S. exports by 2014.
A full copy of NACM‚Äôs 2012 Legislative Introduction and Position Brief can be found here.