Abstract

http://ssrn.com/abstract=168834
 
 

Citations



 


 



Taking the New Consumer Bankruptcy Model for a Test Drive: Means-Testing Real Chapter 7 Debtors


Marianne B. Culhane


Creighton University School of Law

Michaela M. White


Creighton University - School of Law


American Bankruptcy Inst. Law Review, Vol. 7, Spring 1999

Abstract:     
Several bills pending in Congress would apply means-testing to Chapter 7 debtors, requiring those with apparent ability to repay to be dismissed from Chapter 7, leaving Chapter 13 as their main route to a discharge. Chapter 13 would require repayment over 5 years to prebankruptcy creditors.

The authors applied one proposed means-testing formula to a sample of 1043 Chapter 7 cases from seven states across the country. They found that only 3.6% of the debtors emerged as "can-pays" who would be barred from Chapter 7, and that unsecured creditors could expect to collect much less from such debtors than industry-sponsored studies have claimed. Further, the paper shows how predictable avoidance behavior, such as increasing secured debt and/or charitable contributions, could further reduce the number of "can-pays." Thus, the paper casts doubt on the efficacy of imposing burdensome additional requirements on all Chapter 7 debtors in order to bar 3.6% of those debtors from that chapter.

Accepted Paper Series


Not Available For Download

Date posted: February 7, 2000  

Suggested Citation

Culhane, Marianne B. and White, Michaela M., Taking the New Consumer Bankruptcy Model for a Test Drive: Means-Testing Real Chapter 7 Debtors. American Bankruptcy Inst. Law Review, Vol. 7, Spring 1999. Available at SSRN: http://ssrn.com/abstract=168834

Contact Information

Marianne B. Culhane (Contact Author)
Creighton University School of Law ( email )
2500 California Plaza
Omaha, NE 68178
402-280-3154 (Phone)
402-280-2244 (Fax)
Michaela M. White
Creighton University - School of Law ( email )
2500 California Plaza
Omaha, NE 68178
United States
402-280-5515 (Phone)
401-280-2244 (Fax)
Feedback to SSRN


Paper statistics
Abstract Views: 6,649

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo8 in 0.265 seconds