That debate subsequently resulted in the enactment of extensive reforms in 2005 when Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act. Ultimately, the rationale for this legislation is the presumption that Chapter 13 leads to more appropriate outcomes compared with either Chapter 7 filings or other options outside bankruptcy. In this article, Wenli Li outlines the results of two recent studies that have taken a more detailed look at actual outcomes in Chapter 13.
This article appeared in the Fourth Quarter 2007 edition of Business Review.
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