Reply #5: he said he was wrong [View All]

[Fresh_Start]

at that time there was a big to-do over inconsistency in bankruptcy treatment in the different courts, the issue of disparate homestead exemptions was being criticized, there was a sense of numerous repeat bankruptcies from consumer choice rather than events beyond the consumers control.

To some degree it was attempting to eliminate equality on bankruptcy treatment.

PPL in FL and TX have virtually unlimited homestead exemption, Joe Blow in OH could keep his tools of trade and several changes of clothing.

Examples of inconsistencies, some districts forced chapter 13 on 25% of filers, other districts have fewer than 5% chapter 13.

There was bad analysis and wishful thinking in those and in the 2005 bankruptcy bill.
Yes there are ppl that abuse the process.
But the majority of ppl are thrown into bankruptcy not from imprudent financial behaviour but due to loss of spouse, job, or illness.