December 15, 2020

Forbes: The Bankruptcy Code Is Stacked Against Black Families. Elizabeth Warren’s New Bill Would Change That

Bankruptcy offers an exit route for families and businesses trapped by debt. In 2019, Forever 21, Barneys New York and Payless ShoeSource declared bankruptcy. Donald Trump’s businesses have declared bankruptcy on six occasions.

The Bankruptcy Abuse and Protection Act of 2005 made bankruptcy much more expensive and time-consuming for ordinary Americans to access. After the passage of BAPCA, typical costs for declaring bankruptcy rose from $663 to $986 for Chapter 7 bankruptcy, and from $1,847 to $2,515 for Chapter 13 bankruptcy.

Read the full article here.

By:  Elena Botella
Source: Forbes