Bankruptcy Law Did More Harm Than Good, Panelists Say

A major overhaul of the bankruptcy system in 2005 may be driving away consumers who are the most in need of the system’s protection, at least according to some experts at an American Bankruptcy Institute webinar held Oct. 6.

While two of the panelists argued that the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) has created more obstacles for honest consumer debtors, one countered that the legislation has at least met its stated goal of reducing the “skyrocketing” number of consumer bankruptcies.

Although BAPCPA was ostensibly created to combat supposed abuse of the bankruptcy system, one of ...