Attorneys Brace for Impact of New Bankruptcy Code

• Posted by Geoffrey G. Gussis on September 12th, 2005


• Filed in Corporate/M&A

Peter Geier reports for the National Law Journal on the new Bankruptcy Code provisions that will come into effect next month:

"The bankruptcy bar is bracing for the bumpy landing many practitioners expect when the new Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 touches down next month.

Most bankruptcy lawyers agree that the new code is highly complex and technical, that it will cause significant changes in consumer and business bankruptcy practice, and that it is so poorly drafted that it will take time for the courts to sort out its ambiguities.

Observers also warn that a law purportedly aimed at financially undisciplined consumers is sure to bear unintended consequences for entrepreneurs, independent contractors and self-employed people — particularly innovators who use bankruptcy relief when caught in a lean business cycle."

Link: law.com - Attorneys Brace for Impact of New Bankruptcy Code.