It's almost the fifth birthday of Congress's overhaul of the Bankruptcy Code, but the bankruptcy professionals who gathered Monday to discuss its impact didn't come bearing cake or gifts. Rather, they bemoaned the impact that they say the amendments to the Code have had on the bankruptcy process, including making it more difficult for many businesses to restructure.
At the time of its passage, the controversial Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, or BAPCPA for short, was either hailed as a much-needed reform to reports of abuse in the bankruptcy system or as a victory for the banking industry and other special-interest groups after intense lobbying.
But in a teleconference sponsored by the American Bankruptcy Institute Monday afternoon, a group of bankruptcy attorneys, professors and judge could agree on one thing – the law has had various unintended consequences that have dramatically impacted the way they do their jobs from day to day. These haven't necessarily been for the better, they say.
Read the full article, as well as Dorsey Partner Annette Jarvis' thoughts, on The Wall Street Journal Bankruptcy Beat blog.