Articles Tagged with Bankruptcy reform

Bankruptcy Lawyer Bryan Stone answers the question: “Can I keep my house if I file bankruptcy?”

There’s been a recent push by some legislators to further reform the bankruptcy process. The argument is that the system has too many loopholes that can be exploited by those eager to game the system. Though the overwhelming majority of bankruptcy filers are honest and only move forward with seeking bankruptcy protection as a last resort, it is true that occasional bad apples can be used to spoil the bunch. One example of a bad apple is a man from Florida who spent more than a decade using the bankruptcy system to live rent free by continually putting off foreclosure attempts.

Bankruptcy Lawyer Bryan W. Stone answers the question “Do I need an attorney to file bankruptcy?”

Experts in the field of bankruptcy law gathered recently in Arizona to discuss legal changes and how these changes have impacted the majority of debtors. Those gathered at the symposium concluded that the changes that were part of the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) were not only ineffective, but served to make the bankruptcy process more confusing and more expensive for debtors. Ultimately, changes designed to make the process more difficult succeed only in driving away potential filers, helping creditors at the expense of those who may desperately need the relief offered by bankruptcy protection.

Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “What is Chapter 13 bankruptcy?”


Changes to the United States Bankruptcy Code enacted a decade ago were designed to lower the number of bankruptcy filings in the United States. Last year, bankruptcy filings were down about half from a decade ago, but bankruptcy experts wonder if the reforms “have done more harm than good,” according to The Economist.

Man at desk Local Bankruptcy Lawyer Charlotte Debt AttorneyAs a recent paper published by Stefania Albanesi of the New York Federal Reserve and Jaromir Nosal of Columbia University confirms, the decade-old bankruptcy reforms have “led to a permanent drop in the bankruptcy rate.”

However, Princeton assistant professor of Economics Will Dobbie and Jae Song of the Social Security Administration say that tightening bankruptcy rules may suppress the “good microeconomic effects” that easier bankruptcy rules produce. A bankrupt person has more incentive to work, for instance, if large chunks of one’s salary are not seized by creditors.

According to Dobbie and Song, people who were able to avail themselves of bankruptcy protection earned over $6,000 more in average income the year after declaring bankruptcy than those whose petitions were denied. Those whose petitions were denied, Dobbie and Song theorized, were more likely to “slip out of town, change [one’s] job and close down [one’s] bank account.”

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Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “What is Chapter 11 Bankruptcy?”


The unveiling of the American Bankruptcy Institute’s proposed Chapter 11 bankruptcy reforms has been “long-awaited,” reports Katy Stech in the Wall Street Journal.

Old Bankruptcy Ad Charlotte Mecklenburg Bankruptcy Lawyer North Carolina Chapter 11 AttorneyIf you have been waiting for the Institute’s proposals, wait you will no more. It unveiled its recommended changes to Chapter 11 bankruptcies on Monday morning. Some of the proposals might someday become law.

The Institute’s proposed changes would streamline the Chapter 11 bankruptcy process for small businesses, or private companies with less than $10 million in assets or debts. The process would be cheaper as well, eliminating the automatic appointment of an unsecured creditors committee. The Institute also proposed to allow business owners to retain their ownership interest by repaying creditors based on their companies’ market value, as opposed to having to repay all their debts in full, as required under current rules.

Retailing businesses would be given additional time under the proposed changes to decide which store leases to continue and which ones to break. Current rules provide that tenants have 210 days after filing a bankruptcy petition to decide whether to assume or reject a lease. Stech reports that professionals who assist retailers in restructuring business operations have said the 210-day deadline leaves little time to renegotiate leases. Under the Institute’s plan, retailers would have one year to assume or reject leases.

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