Bankruptcy Reform Quotes

In 1978, we adopted a new Bankruptcy Code in the United States, and a principal part of this was designed to adjust to the new corporation, to find ways to let a corporation that had gotten into financial trouble reorganize itself. A big part of the selling point on this bankruptcy law was, 'It will preserve jobs.'

The model for our early bankruptcy laws was Deuteronomy, the idea that, under certain circumstances - in Deuteronomy, it is simply the passage of seven years' time - people are released from debt, simply because they are released from debt. No more debt. You start over again. This has been a very powerful model in this country. It's being destroyed now. People talk about how much new employment, new wealth, and so on are continuously generated in this country.

The Orderly Liquidation Authority prescribed by Dodd-Frank should be repealed and replaced by an amendment to the U.S. Bankruptcy Code which would operate to prevent cross-default provisions from impacting derivatives books so long as mark-to-market payments are being made in a timely fashion.

I became a professor myself, teaching bankruptcy and consumer protection. I conducted a national study of mortgage companies in bankruptcy. And what I found was that big banks routinely broke the law.

When I went to law school, I took a bankruptcy class with then-professor, now-Senator Elizabeth Warren. And I'll never forget that first day of class, hearing her talk about the importance of the bankruptcy system.

Restrict bankruptcy rules.

The Bankruptcy Reform Act of 2005 made it harder for individuals to file bankruptcy, which is always the last resort. Unfortunately, simultaneously consumers racked up so much debt that counseling companies - which are higher up on my list if you need help managing your debt - are sometimes unable to help. So if you fall into this camp, debt settlement may be something to consider.

In 1997, the National Bankruptcy Review Commission recommended that chapter 12 of the Federal Bankruptcy Code, the chapter that contains bankruptcy protection for family farmers, be made permanent.

What is the harm of doing the right thing? What is the harm of doing our job as legislators and making sure we do not stick the entire bankruptcy community with these provisions that do not make any sense?