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March 12, 2008

Dan Burton introduces Savannah's Law

Indiana Legislative Insight covered some legislation Dan introduced in last week's issue:

U.S. Rep. Dan Burton (R) introduces H.R. 5494, known as "Savannah's Law," to revise the U.S. Bankruptcy Code to ensure that an individual cannot file bankruptcy in cases where permanent disability results from personal injury. The bankruptcy code does not currently offer exceptions for cases of permanent disability. Rep. Burton introduced this legislation responding to the concerns of constituent Sheri Reece and her daughter, Savannah Reece. In 2003, Sheri was in an automobile accident while pregnant with Savannah. Sheri suffered multiple injuries, but unborn Savannah suffered severe brain damage. Savannah, now four years old, requires around the clock care. Sheri was offered a settlement by the insurance company which she contends was insufficient to provide Savannah the care she requires, and which would bar any further legal action. If the Reece family declines the settlement and moves forward with a lawsuit, the federal bankruptcy court can discharge any judgment she might get from the state civil courts, and Savannah would again be denied the necessary care.

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