Recent Changes in the Consumer Bankruptcy Laws

In April 1981, the Subcommittee on Courts of the Senate judiciary Committee began hearings to determine why there was such an extraordinary increase in personal bankruptcies since passage of the Bankruptcy Reform Act of 1978, and to determine appropriate corrective action. The subcommittee rather quickly concluded that the 1978 code, which became effective in October 1979, promoted an excessive number of personal bankruptcies and needed to be amended.