The Sub Rosa Subchapter: Individual Debtors in Chapter 11 after BAPCPA

Abstract:     
In reforming the bankruptcy laws in 2005, Congress added several provisions to the Bankruptcy Code regarding the use of chapter 11 by individuals. These changes radically alter the basic chapter 11 rules with respect to individuals; among the most significant change is that postfiling service income, previously allocated to the individual debtor alone (and not available to pay prefiling creditor claims), was made property of the estate available to pay prefiling creditor claims. This article surveys the changes made and their possible impact, and suggests that they are sufficiently radical to have warranted a separate subchapter of chapter 11.

Keywords: bankrutpcy, BAPCPA, individual reorganization

JEL Classifications: G33, K19, K29, K30

Accepted Paper Series