Sec. 2. Findings

233 words·~1 min read·/bill/116/s/3565/is/section-2

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Congress finds that— the collection of debts involves the use of the mails and wires and other instrumentalities of interstate commerce; at times of major disaster or emergency, the income of consumers and small businesses is often impaired and their necessary daily expenses often increase; temporary forbearance on debt collection is critical to fostering economic recovery and stability in the wake of major disasters or emergencies; temporary forbearance benefits not only consumer and small business debtors, but also other creditors by avoiding downward collateral price spirals triggered by an increase in foreclosure activity; without forbearance, many consumers and small businesses are unlikely to be able to pay their obligations according to their original terms and are likely to default on obligations or file for bankruptcy, resulting in reduced recoveries for creditors, and in the case of bankruptcy, no recovery of unaccrued interest; with forbearance, creditors are likely to realize greater long-term value because consumers and small businesses will be more likely to be able to repay their obligations after the major disaster or emergency has subsided; the legislative and administrative response to major disasters and emergencies may consist of multiple components divided among different statutes and programs; and when evaluating whether property has been taken from a person without just compensation, a holistic evaluation of the burdens and benefits of all legislative and administrative responses, including indirect benefits from macroeconomic stabilization, is appropriate.