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?© BrainMass Inc. brainmass.com October 25, 2018, 6:28 am ad1c9bdddf
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 ...
This solution delves into the recent changes in bankruptcy laws and their effectiveness or fairness.
Changes in Bankruptcy Laws
Just so you can have an idea of what our discussion debate was about: In October of 2005, our bankruptcy laws were substantially changed. In particular, the new law makes it harder to file for Chapter 7 and changes the Homestead Exemption.
In my case I was assigned to argue against this law such as 'What did it change; why were those changes bad? I answered this questions already I only need help with this last question please.
Do you think that the new laws will cause a decline in bankruptcy filings in the long run or will they pretty much stay the same?View Full Posting Details