BAPCPA: bankruptcy reform and small business
August 30, 2006 by Mary Wynne-Wynter
This is a good article about a bad law but it does not talk about the effect on small business startups: what I would call "less startup insurance". How can entrepreneurs risk startup investment considering most use credit cards to finance the startup period? The timing seems particularly insane in light of the previous post about labor devaluation. I can't help repeating: where is the defiance? How do we respond? How do we redefine 'ownership society' so that its about independence, and not materialism? Hmmm a good opportunity to try out a new survey tool for my blog...coming soon!
Bankruptcy Reform Gave Creditors Too Much: "Reformed bankruptcy law benefits creditors and continues to enable abusers of the regulations while hurting those most in need of debt forgiveness protections."
Under BAPCPA, fewer non-opportunistic debtors will file for bankruptcy because they cannot afford the high costs of filing. Those debtors will be worse off because they have less consumption insurance. But opportunistic debtors will continue to find bankruptcy worthwhile as long as they plan in advance and have good lawyers.