I've highlighted the "good" stuff:
LexisNexis CourtLink Data Shows 2006 Chapter 7 Figures 71% Less Than 2005
by BK Blogger on Wed 20 Sep 2006 07:36 AM PDT | Permanent Link
Blog sponsored by Bankrupt-Law.com
DAYTON, Ohio, Sep 19, 2006 (BUSINESS WIRE) -- Nearly one year has passed
since enactment of the Bankruptcy Abuse Prevention and Consumer
Protection Act of 2005 (Oct. 17, 2005). LexisNexis(R) CourtLink(R)
compiled data shows 2006 Chapter 7 bankruptcy filings (Jan. 1 - Sept.
15) are 71 percent lower than 2004 Chapter 7 filings for the same time
period.
Year-to-date Chapter 7 figures in 2006 show 237,578 filings compared
with 2004 Chapter 7 filings of 830,014 compiled by LexisNexis CourtLink
for the period January 1 to September 15, 2004. The surge in consumer
bankruptcy filings began in Q2 2005 before enactment of the new law that
put Chapter 7 postings in 2005, 31.7 percent ahead of 2004 figures for
the year.
Henry J. Sommer, Esq., editor-in-chief of LexisNexis Collier on
Bankruptcy, addresses several angles pertaining to the consumer
bankruptcy law from more than 35 years as a consumer bankruptcy
attorney:
-- Chapter 7 and 13 bankruptcy filings are slowly rising since
enactment of the law, however, at a much lower pace than in
previous years likely due to cost to file; complications with
paperwork; the surge in filings prior to the law; and a
misperception that Chapter 7 is no longer available. Attorneys
are trying to issue appropriate messaging that helps set the
record straight.
-- The means test has affected virtually no cases with less than
1 percent of Chapter 7 bankruptcy cases found to be abusive.
Proponents of the law implemented the means test as a way to
ensure repayment of debt. Contrary to popular belief by law
proponents, the majority of those who file bankruptcy DO NOT
have ability to repay debt.
-- Many bankruptcy attorneys still struggle to manage the law's
complexity, i.e. documents, calculations and intricacies of
the law.
-- What's happening to the people who can't afford to repay their
debts or file bankruptcy? Many are going underground; not
using banks; asking for cash payments to protect wages and in
general, suffering from the stress of having debts they cannot
pay.
-- Credit counseling remains a key problem area for the new law,
and many are watching how it unfolds. There are language
issues; cost vs. free; expected IRS interest in counselors;
and down the road there could be capacity issues with fewer
counselors than filers.
-- Many factors will contribute to more personal bankruptcies.
LexisNexis CourtLink Data Shows 2006 Chapter 7 Figures 71% Less Than 2005
by BK Blogger on Wed 20 Sep 2006 07:36 AM PDT | Permanent Link
Blog sponsored by Bankrupt-Law.com
DAYTON, Ohio, Sep 19, 2006 (BUSINESS WIRE) -- Nearly one year has passed
since enactment of the Bankruptcy Abuse Prevention and Consumer
Protection Act of 2005 (Oct. 17, 2005). LexisNexis(R) CourtLink(R)
compiled data shows 2006 Chapter 7 bankruptcy filings (Jan. 1 - Sept.
15) are 71 percent lower than 2004 Chapter 7 filings for the same time
period.
Year-to-date Chapter 7 figures in 2006 show 237,578 filings compared
with 2004 Chapter 7 filings of 830,014 compiled by LexisNexis CourtLink
for the period January 1 to September 15, 2004. The surge in consumer
bankruptcy filings began in Q2 2005 before enactment of the new law that
put Chapter 7 postings in 2005, 31.7 percent ahead of 2004 figures for
the year.
Henry J. Sommer, Esq., editor-in-chief of LexisNexis Collier on
Bankruptcy, addresses several angles pertaining to the consumer
bankruptcy law from more than 35 years as a consumer bankruptcy
attorney:
-- Chapter 7 and 13 bankruptcy filings are slowly rising since
enactment of the law, however, at a much lower pace than in
previous years likely due to cost to file; complications with
paperwork; the surge in filings prior to the law; and a
misperception that Chapter 7 is no longer available. Attorneys
are trying to issue appropriate messaging that helps set the
record straight.
-- The means test has affected virtually no cases with less than
1 percent of Chapter 7 bankruptcy cases found to be abusive.
Proponents of the law implemented the means test as a way to
ensure repayment of debt. Contrary to popular belief by law
proponents, the majority of those who file bankruptcy DO NOT
have ability to repay debt.
-- Many bankruptcy attorneys still struggle to manage the law's
complexity, i.e. documents, calculations and intricacies of
the law.
-- What's happening to the people who can't afford to repay their
debts or file bankruptcy? Many are going underground; not
using banks; asking for cash payments to protect wages and in
general, suffering from the stress of having debts they cannot
pay.
-- Credit counseling remains a key problem area for the new law,
and many are watching how it unfolds. There are language
issues; cost vs. free; expected IRS interest in counselors;
and down the road there could be capacity issues with fewer
counselors than filers.
-- Many factors will contribute to more personal bankruptcies.