Bankruptcy INK

The effects of the new Bankruptcy Code upon Illinois residents filing for Bankruptcy have been interpreted in different ways. Some experts claim that the changes have been successful, while others disagree completely. A recent article by Marketwatch highlighted the pros and cons of the new legislation.

Those claiming that changes have been beneficial, point to the fact that bankruptcy filings have decreased. In Marketwatch, Steve Bartlett, president and chief executive of Financial Services Roundtable in Washington, was quoted as saying, "[b]ankruptcy filings are down, more Americans than ever are getting credit counseling and, as a result, consumers have the opportunity to become educated about prudent financial management." He is correct in stating that Bankruptcy filings are down since the enactment of the new legislation. Nonetheless, when you look deeper at the numbers, we see unintended reasons for the lower filing numbers.

Bankruptcy filings have decreased due to the new legislation, but this has not necessarily met the goals of the new legislation. In Marketwatch, Henry Sommer, president of the National Association of Consumer Bankruptcy Attorneys, stated, “"I doubt that it was the intention of even those who voted for the bill to increase documentation requirements, bureaucratic paper work, and other costs so much that honest low-income and working families, not the 'high rollers' at whom the amendments were supposedly aimed, are deterred or prevented from obtaining the bankruptcy relief they need. But that is what has happened.” This is not a result that Congress had intended. Moreover, bankruptcy filings are rebounding, thereby negating the benefit mentioned by supporters of the new legislation.

Bankruptcy is intended to relieve those truly in need of some sort of financial re-organization. Rest assured, that Illinois bankruptcy attorneys will be there to help you in any way we can. Bankruptcy is essential for so many people and we want to make sure that you can access its relief.