Publication Date
2006
Abstract
Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 to reduce what many viewed as widespread abuse of the bankruptcy system. The legislation also contained some "consumer friendly" provisions, including two that exclude and exempt certain tax-exempt retirement savings from the bankruptcy estate and from the calculation of disposable income. These sections of the Act may, however, have created new opportunities for abuse. This Note discusses the possibilities for abuse that arise from the change in treatment of retirement savings in bankruptcy and argues that in certain cases, a debtor's use of these exemptions and exclusions violates the Bankruptcy Code's good faith provisions. Although the legislation sets no statutory limits on the use of the exemptions and exclusions, the Code's good faith requirement provides the courts with a tool to prevent the kinds of abusive behaviors that Congress targeted when it enacted the legislation
Recommended Citation
Hobson, Tedra
(2006)
"The Bankruptcy Abuse Creation Act?: Curing Unintended Consequences of Bankruptcy Reform,"
Georgia Law Review: Vol. 40:
No.
4, Article 11.
Available at:
https://digitalcommons.law.uga.edu/glr/vol40/iss4/11