Govenrment and Business Environment Case Study

US Bankruptcy Laws: Benefiting Debtors or Creditors?

OR

Abstract:
Since its inception in 1800, the bankruptcy law in the US has undergone several reforms, which were always alleged to be more in favour of the creditors. In early 2005, the US Senate gave its approval to the Bankruptcy Abuse Prevention and Consumer Protection Act, a bill that was put on hold for eight years. The proponents of the bill claim that it would curb the abuse of the bankruptcy law as a financial planning tool and would place personal responsibility on the debtors to pay off their debts. However, critics of this bill argue that, when enacted, the bill would place an onerous task on those debtors, who are genuinely burdened with huge medical expenses, job losses and low income levels.

Pedagogical Objectives:

• To discuss the various reforms in the US Bankruptcy law
• To discuss the legal implication over debtors and creditors.

Keywords : US bankruptcy law,Government and Business Environment Case Study, Debtor’,s prison, Panic of 1837, US state debtor-creditor laws, National Bankruptcy Conference, Bankruptcy Reform Act 1978, US credit card firms, Profits of credit card firms and US personal bankruptcies, Bankruptcy Abuse Prevention and Consumer Protection Act, Chapters 7, 10, 12 and 13, Means test, Asset protection trusts, Millionaire’,s loophole