"The Growing Trend of Women Filing Bankruptcy and
the Effect of the Bankruptcy Abuse Prevention and
Consumer Protection Act of 2005"
By Arthur W. Rummler
As you may have heard, the Bankruptcy Code1 was revamped in 2005 with the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act. With a name like that, it's no wonder that everyone refers to the amendment as "BAPCPA" (pronounced bap-see-puh). While the Bankruptcy Code aims to treat men and women the same, it would appear that certain sections affect women differently both generally and specifically.
Additionally, there is a growing trend towards higher bankruptcy rates among women. While the exact causes are not certain, there are enough commonalities that commentators have reduced the reasons to perceived core causes.
The higher rates of bankruptcy combined with the changes from BAPCPA present a challenge for women and the attorneys who represent them. But before exploring the specifics, let's take a brief journey through the history of bankruptcy laws.
2. Short History of Bankruptcy Laws
For loan oft loses both itself and friend,
And borrowing dulls the edge of husbandry."
(Hamlet, Act I, Scene 3, William Shakespeare.)
NOTE: This is just an excerpt of the entire article. Follow this link:
http://www.debt3online.com/index.html?page=article&article_id=258 to read the rest of the article (which is located about halfway down the page).
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By Arthur W. Rummler
It’s I.M. Wealthy on the line, a long-time client. In the past you’ve handled his corporate matters, real estate transactions and estate planning. Your partner even handled his divorce. Reflexively your mind snaps back into lawyer mode. This time there are no customary salutations and niceties. Wealthy cuts right to the chase.
He relates a sad tale told too often in our current economy. His once formidable business is sick and fading fast. How can this be? Wealthy has…or had….a great business. He had lots of clients, sold millions of widgets and made a fortune. Now he’s nearly broke and worse, he’s pledged all his personal assets to cover his failing business. Creditors are nipping at his heels and he can’t see any solution. He’s come to you to sort it out.
You listen carefully to his sordid tale of declining sales, market fluctuations, a risky takeover and intense competition from overseas. For the last two years he’s poured every cent of his savings into the company. He’s even mortgaged every asset he owned just to keep the doors open. And it still wasn’t enough. The business continued to spiral downward. Now Wealthy is facing lawsuits, judgments, citations and IRS levies. He is effectively out of business.
The
unfortunate scenario of I.M. Wealthy is common today, but it is also
avoidable. While economic changes happen quickly, leaving even
well-heeled businesses in permanent trouble, there are usually some
distinct warning signs. By heeding the signals of impending business
failure, business owners can manage the outcome to their advantage.
Title 11 of the United States Code (the "Bankruptcy Code") provides at least three possible solutions to business problems: Chapter 11, Chapter 7 and Chapter 13. More solutions exist outside of bankruptcy court, such as out of court workouts, asset or business sales, and assignments for the benefit of creditors. However, the first step to recovery or a soft landing is to identify and heed the common warning signs.
NOTE: This is just an excerpt of the entire article. Follow this link: http://www.dcbabrief.org/vol211208art4.html to read the rest of the article.
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