Are Complications Lowering Bankruptcy Filings?
– By Priya Jestin, Staff Writer
Since we’ve completed more than a year of the new bankruptcy law, we can do an honest evaluation of the new law now. According to many bankruptcy attorneys, the new law hasn’t impacted businesses as much as it has individual consumers. Not only are people forced to deal with the painful reality of bankruptcy; they have the increased burden of meeting myriad requirements before filing. Also the amount of paperwork required has also increased considerably.
Could all these problems be the reason for the fall in bankruptcy rates? Well, there may be many who thought it would be better to slug it out somehow rather than go through a complicated bankruptcy filing. Most of the drop was in Chapter 7 filings, which are personal or business liquidations. Often small-business owners will not file for Chapter 7 because of the emotional ties they have to their business.