Bankruptcy

The CARES Act and Changes to the Bankruptcy Code

by Lindsey Hall Lindsey Hall

On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (CARES Act) was signed into law.  The CARES Act is aimed at providing relief to small businesses and consumers impacted by the COVID-19 pandemic.  The CARES Act contains several provisions that are related to bankruptcy and will be discussed below. Read more

Collecting Through the Bankruptcy Process

by Scott Paris Scott Paris

In 2005, Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act to amend the United States Bankruptcy Code (the “Act”). The changes made to the Act were designed to make it theoretically more difficult for people to file Chapter 7 Liquidation bankruptcy, forcing more filers into reorganization (repayment) through a Chapter 13 bankruptcy. While these changes had the intended effect in the short term, the 2007 financial crisis threw a wrench in the gears of Congress’s intent in amending the Act. According to the U.S. Bankruptcy Courts, the number of filings consistently increased from 2006 through 2011, and by 2010 had reached pre-2005 amendment levels. Since 2011, filings have steadily decreased. This decrease is good for both the economy and the collections industry, but as collection attorneys, knowledge of the Bankruptcy Act and Rules is necessary for a successful practice. Read more