bankruptcy reform
In spite of Georgia's strong economy, bankruptcy filings are at record levels. During 1998, the number of filings exceeded 1.43 million nationwide with nearly 97 percent attributable to consumer bankruptcies. These record filings in the midst of a booming economy and low unemployment is clear indication that the system is broken and needs reform.This rapid rise in personal bankruptcies and a near-record high in business bankruptcies is a trend that must be reversed. L. Wesley Smith, President of the Northwest Georgia Bank in Ringgold and the 1998-99 Chairman of the Georgia Bankers Association said, "We believe education is one of keys to help consumers and businesses understand the consequences of filing bankruptcy. There are other alternatives to bankruptcy many people never consider simply because they oftentimes do not know what to do with mounting debts. Far too many people consider bankruptcy as their first alternative, instead of their last resort as contemplated by the bankruptcy laws over the years."U.S. bankruptcy laws were first written around the turn of the century to provide a fresh start for people who through hardship or loss were unable to meet their financial responsibilities. No significant changes we
George Gekas (R-PA) again introduced this important bill, H. There are three principal types of bankruptcy filings. It should be viewed as a last resort and not as a panacea for financial problems. 833 (pdf format), early in 1999, which has already passed the House. After filing, it is extremely difficult to reestablish credit. But creditors are not alone in bearing the losses of personal bankruptcies. The Commission has initially adopted recommended changes to the small-business bankruptcy provision of the Code so that its protection will be afforded to only those businesses with a chance to survive. re made to this law until 1978, when Congress passed the Bankruptcy Reform Act making it easier for consumers to declare bankruptcy - and more difficult for creditors to collect debts. 4 percent paid a price for each filing - about $400 per adult. The growing number of business and consumer bankruptcies caused Congress to create The National Bankruptcy Review Commission to make recommendations to the Congress on ways to both improve the system and to limit bankruptcy protection to the truly needy. The losses suffered by these businesses are passed along to their customers in the form of higher prices on goods and services. In a recent interview, one of the Review Commissioners discussed the need to make a distinction between small businesses that can survive and those that cannot. If credit can be reestablished, it means paying higher interest rates and making larger down payments.
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