AN EMPIRICAL ECONOMIC ANALYSIS OF THE 2005 BANKRUPTCY REFORMS

The Bankruptcy Abuse and Consumer Protection Act of 2005 (the Act) was signed into law on Apr 20, 2005, and took effect on Oct 20, 2005. The Act represents the most significant change in personal bankruptcy law since the Bankruptcy Code's (the Code) enactment in 1978. In the section I in this a...

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Bibliographic Details
Published in:Bankruptcy developments journal 2008-04, Vol.24 (2), p.327
Main Authors: Evans, Thomas, Lewis, Paul B
Format: Article
Language:English
Subjects:
Bankruptcy Abuse Prevention & Consumer Protection Act 2005-US
Bankruptcy laws
Collateral
Consumer protection
Debt
Debtors
Disposable income
Earnings
Personal bankruptcy
Reforms
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Summary:The Bankruptcy Abuse and Consumer Protection Act of 2005 (the Act) was signed into law on Apr 20, 2005, and took effect on Oct 20, 2005. The Act represents the most significant change in personal bankruptcy law since the Bankruptcy Code's (the Code) enactment in 1978. In the section I in this article describes the two primary bankruptcy routes for which consumer debtors may opt: chapter 7 or chapter 13. In Section II, the paper presents empirical evidence of the effect of the Act on both the number of personal bankruptcies, and on the relative fraction of chapter 7 and chapter 13 filings. In Section III, the paper provides a discussion of the meaning of the fresh start, and put the Act in both historical and international perspective. Early statistical data supports the conclusion that the Act, at least initially, has succeeded in altering the ratio of chapter 7 and chapter 13 filings and impacting the rate of bankruptcy filings.
ISSN:0890-7862