Bankruptcy Filings Fall in Year Since New Law

Summary


WASHINGTON -- The ranks of people seeking to erase their debts have thinned noticeably in the year since the biggest changes in U.S. bankruptcy laws in a quarter-century took effect.

At a public session at the U.S. Trustee's office in Alexandria, Va., on a recent morning, only about half the 50 or so chairs were occupied -- in a room that used to be jammed with anxious people and their attorneys.

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Extract


Bankruptcy Filings Fall in Year Since New Law

Most were there seeking to file under Chapter 7 of the U.S. Bankruptcy Code, which wipes the debt slate clean after certain assets are forfeited. The bankruptcy trustee's red-jacketed files on them land with a thwack on the official table, fattened by new documents required by the landmark bankruptcy law that ...

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