Bankruptcy Reform Act of 1978
By: Kyle Weisshahn & Kaleb Woo
- Establish November 6, 1978
- repealed the existing substantive law on bankruptcy
- became effective on October 1, 1979
- Recently updated in 2005
- Introduced in the House as H.R. 8200 by Don Edwards (D-CA) on July 11, 1977
- "The code extended a variety of new benefits to this class of bankrupt debtors and enhanced their position in relation to creditors."
- "Concern was expressed that these changes in the costs and benefits of non business bankruptcy would lead to an increase in the number bankruptcy cases filed by debtors and would have an adverse impact on the market for consumer credit. "
- Bankruptcy is the state of being bankrupt
- Bankrupt is a person or an organization declaring in law unable to pay outstanding debts
Who is affected?
The average person who is in a state of bankruptcy or close to it.
What happened before?
Before the act was passed, the people who were filing bankruptcy did not have as many benefits as they have now.