Bankruptcy Reform and the Financial Crisis
North Carolina Banking Institute, 2009
7 Pages Posted: 30 Jan 2009 Last revised: 25 Mar 2009
As part of an exchange on the financial crisis generated from a roundtable discussion at the University of North Carolina School of Law, this commentary observes the sharp shift in public discourse on, and regulatory interest in, the federal bankruptcy system, financially distressed homeowners, and judicial discretion, presumably brought about by the changed financial climate. That shift is reflected in stark differences between the 2005 amendments to the Bankruptcy Code (BAPCPA) and pending proposals to enable home mortgage modification in chapter 13 bankruptcy cases. I identify several challenges associated with using bankruptcy law to pursue current housing and economic policy goals and offer suggestions on how to manage those challenges, including the repeal of BAPCPA.
Keywords: Bankruptcy, foreclosure, homeownership, financial crisis, judicial discretion
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