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Bankruptcy Law Changes

The recent changes in the bankruptcy laws have made it considerably more difficult for individuals and businesses to receive a Chapter 7 bankruptcy. The new law requires counseling and means testing and disallows persons who earn over the median state income to file for such a bankruptcy. Does this strike you as fair? What rationale, if any, would be behind this idea?

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It is certainly true that since the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) was passed in 2005 there are new requirements that make filing for and receiving a Chapter 7 bankruptcy more difficult. However it is my personal belief that this is fair and the reason I believe it to be fair is because of the very reason the BAPCPA came into being was with the goal of preventing abusive bankruptcy filing practices. Many businesses suffered greater losses prior to this act when there were fewer regulations guiding the filing and receipt of bankruptcy. Not only did business ...

Solution Summary

This solution delves into the recent changes in bankruptcy laws and their effectiveness or fairness.