Aug. 12, 2006 (Knight Ridder/Tribune Business News delivered by Newstex) —
filings have plunged since a new law added more steps and expense to
the process, but the jury is out on whether the stricter rules are
playing a role in the huge drop-off or it’s simply because so many
debtors rushed to court last year to beat the change in the law.
John Penn, a spokesman for the American Bankruptcy Institute, said he
thinks it’s probably a combination of both factors, along with a decent
economy in which people have jobs.
After last year’s stampede
to avoid the tougher bankruptcy law, it’s difficult to know what should
be expected with the new requirements in place, said Penn, a Fort
Worth, Texas, attorney. The 1.8 million bankruptcy petitions filed
nationally in 2005 was a record.
"We really are looking for the new normal," Penn said Friday. – Read Full Story at PJM