We've all heard the rationale for bankruptcy reform at cocktail parties and around the dinner table: Any deadbeat who runs up his bills can, before he pays up, run away and buy a house in Florida. The creditors can't touch his homestead. Wh…
It often comes as a surprise to first-year lawyers, but there is not "justice for all" in the American legal system: There is justice for those who can afford counsel, and for those fortunate enough to qualify for a legal services or pro bo…
Senate Banking Committee members criticized a number of credit card industry marketing and fee practices during an oversight hearing on May 17. Several members of the committee, including committee chair Richard Shelby (R-Ala.), expressed c…
Before enactment of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005, the denial of discharge imposed against an individual chapter 7 debtor under §727 of the Bankruptcy Code was one of the most positive provisio…
Creditors in the consumer credit industry face many challenges in managing rising bankruptcy filings. Five components are critical to managing creditor rights recoveries: (1) operational procedures to minimize expenses, (2) a sound manageme…
The Senate Permanent Subcommittee on Investigations, following up on prior hearings and recommendations, has released a bipartisan report critical of credit counseling industry practices. The report also calls for a number of reforms. "Over…
"Home foreclosure" is the phrase probably most feared by homeowners in financial distress. Repossessed cars can be explained away as sold, totaled or loaned. Repossessed appliances discreetly disappear, spirited quickly away by a couple of …
This month's Update contains excerpts from a synopsis of S. 256, prepared by Thomas J. Yerbich, vice chair of ABI's Consumer Bankruptcy Committee. The excerpt covers changes made to chapters 7, 11 and 13, debtor's duties, exemptions, exclus…
State Debt Collection Laws The federal Fair Debt Collection Practices Act (FDCPA) applies to debt-collection practices throughout the nation, even those that are purely intrastate in nature, and thus it essentially is a "uniform" law in eve…
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 1 (Reform) mandates pre-filing credit and budget counseling for consumers seeking bankruptcy protection under both chapters 7 and 13. This provision has remained consistent…