Tuesday, 26 June 2012

"Reformed" Personal Bankruptcy Act of 2005, now broken, should urgently be truly Reformed This Time

Time, once again, the reform of bankruptcy law ny of 2005 amended, and the reform of the new reform of Chapter 7 bankruptcy? Or even Chapter 13? On October 17, 2005, amid atmospheric phenomena highly charged drama, solid promises and expectations, the new bankruptcy law, the Bankruptcy Abuse and Consumer Protection Act or BAPCPA, which was enacted by Congress in largely at the behest of the credit industry and financial, among other special interests, put into effect quickly. Generally called "reform" of bankruptcy law, the law had been regarded as a kind of failure of cure-all that is going to fix a "broken" bankruptcy system in the U.S., especially, reverse or reduce dramatically high volume of bankruptcy filings and the increased use of bankruptcy by American consumers in resolving their debt problem. The general argument, dominant and the premise expressed by the banking and financial industry advocates and supporters of the reform law, and their sponsors in Congress, was that the growth of the bankruptcy was due to "bankruptcy fraudulent "by consumers and excessive" generosity "of the bankruptcy system of age, as he said, encouraged" abuse "and allowed a large number many of the debtors to repudiate debts that may well pay to least in part.




A Congressional Research Service (CRS) report on the matter "which outlines the legislative objectives of [the] Consumer Reform," summed it up this way:"The high volume of consumer bankruptcy filings during the 1990 fuels the argument that current law is too lenient, ie, 'debtor to use' bankruptcy. Proponents of consumer bankruptcy law new york reform cite many reasons their support. The legislation seeks, among other things, to make the presentation more difficult and thus prevent failures "of convenience" to revive the social "stigma" of bankruptcy to avoid bankruptcy be used as a financial planning tool to determine who can pay their debts and to ensure that they do, to lower interest rates consumer credit, and to maximize distribution to secured or unsecured creditors to carry out these objectives, proposals to implement a "means test" to determine the eligibility of consumer debtors to file under chapter 7 "..

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