George_1950
Jun 30, 2008, 08:33 AM
While I'm not a fan of President Jimmy Carter, he did sign the Bankruptcy Refore Act of 1978: "The Bankruptcy Reform Act of 1978 (as amended and codified in 11 USCA) governs bankruptcy cases filed on or after October 1, 1979. This act established United States Bankruptcy Courts in each federal judicial district and made the new panels courts of record with their own clerks and other staff.
The Bankruptcy Reform Act of 1978 substantially revamped bankruptcy practices. A strong business reorganization Chapter was created, Chapter 11. (This replaced the old Chapters X, XI and XII that had been created by the 1898 Act and amended by the Chandler Act.) Similarly, a more powerful personal bankruptcy, Chapter 13, replaced the old Chapter XIII. In general, the Reform Act of 1978 made it easier for both businesses and individuals to file a bankruptcy and to reorganize." Bankruptcy Reform Act Overview (http://www.bankruptcylawfirms.com/Bankruptcy-Code.cfm)
The 1978 Act greatly expanded Chapter 13 and was the first significant reform of the law since the Great Depression. The 1978 Act assisted many, many homeowners to keep their homes, autos, and household goods.
After winning the Congress in 1994, the GOP began the process of 'reform', to undo the reforms of 1978. In fact, President Clinton vetoed two attempted reforms by the GOP congress. After W won in 2000, the credit card merchandizers won out and the American people were the great losers in the most recent reform. Even so, there is new commentary as to how the latest reform was just a payoff to big shot political contributors to the GOP: "The bankruptcy reform law isn't working as advertised -- and lenders, whose loose lending standards contributed to the problem, appear to be abusing the system." See: Lenders create a bankruptcy monster - MSN Money (http://articles.moneycentral.msn.com/Banking/BankruptcyGuide/LendersCreateABankruptcyMonster.aspx?page=all)
The Bankruptcy Reform Act of 1978 substantially revamped bankruptcy practices. A strong business reorganization Chapter was created, Chapter 11. (This replaced the old Chapters X, XI and XII that had been created by the 1898 Act and amended by the Chandler Act.) Similarly, a more powerful personal bankruptcy, Chapter 13, replaced the old Chapter XIII. In general, the Reform Act of 1978 made it easier for both businesses and individuals to file a bankruptcy and to reorganize." Bankruptcy Reform Act Overview (http://www.bankruptcylawfirms.com/Bankruptcy-Code.cfm)
The 1978 Act greatly expanded Chapter 13 and was the first significant reform of the law since the Great Depression. The 1978 Act assisted many, many homeowners to keep their homes, autos, and household goods.
After winning the Congress in 1994, the GOP began the process of 'reform', to undo the reforms of 1978. In fact, President Clinton vetoed two attempted reforms by the GOP congress. After W won in 2000, the credit card merchandizers won out and the American people were the great losers in the most recent reform. Even so, there is new commentary as to how the latest reform was just a payoff to big shot political contributors to the GOP: "The bankruptcy reform law isn't working as advertised -- and lenders, whose loose lending standards contributed to the problem, appear to be abusing the system." See: Lenders create a bankruptcy monster - MSN Money (http://articles.moneycentral.msn.com/Banking/BankruptcyGuide/LendersCreateABankruptcyMonster.aspx?page=all)