Ten Years After Consumer Bankruptcy Reform in the United States: A Decade of Diminishing Hope and Fairness

The tenth anniversary of the effective date of Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (Reform Act), the largest reform to the consumer bankruptcy in the United States in a quarter of a century, will be marked in October of 2015. Prior to, and since its passage, scores of scholars have theorized about the impact of the Reform Act. The vast majority of research since its passage shows that the Reform Act has not had a long-term impact on filing rates. With this backdrop, the paper explores how the virtues of fairness for creditors and hope for individuals are not enhanced by the Reform Act.

The consumer bankruptcy system in the United States appears to be largely the same as it was prior to the Reform Act without any meaningful improvement for individuals in need of relief. In fact, the virtues of hope and fairness appear to be diminished under the Reform Act.