Bankruptcy Reform

Since the enactment of the new Bankruptcy provisions (Bankruptcy Abuse Prevention and Consumer Protection Act of 2005) on October 17, 2005, Bankruptcy filings have drastically dropped. There have been a lot of complaints regarding the new provisions, but mostly from debtors and their attorneys. I have watched the Bankruptcy filings in Southern California go from a four page report to barely one page. I think that these provisions were for the best. People and corporations alike were abusing the bankruptcy relief act. Unfortunately, the new provisions were only for people and small businesses with a few exceptions.

I think that the new provisions will force people to be more responsible with their finances or suffer the consequences. It is amazing how it is titled Bankruptcy Abuse Prevention and “Consumer Protection” Act of 2005. I don’t see in what ways they are trying to “protect” the consumer. Especially since it was heavily lobbied by banks and credit card companies. Even so, I think that it was a good thing. What future impact it will have is still up for debate. As well, the interpretations of each judge and how they will differ will be interesting to see. If you want to learn more, there are several free websites that you can find that will give you explanations

of the new provisions and how they will affect bankruptcy filings and discharge. Here is an article that I found Bankruptcy Abuse Prevention and Consumer Protection Act of 2005


Article by
Brett Duncan-Creger