About the Consumer Bankruptcy Reform Act of 2020 – Part One

About the Consumer Bankruptcy Reform Act of 2020 – Part One

The effects of the COVID-19 pandemic linger on and many individuals continue to experience financial problems. For many of these people, bankruptcy may be their only realistic option to find debt relief and get a fresh start. In December 2020, United States Senator Elizabeth Warren (D-Mass.) and House Judiciary Committee Chairman Jerrold Nadler (D-N.Y.) introduced the Consumer Bankruptcy Reform Act of 2020 (CBRA). The legislation is co-sponsored by Senators Dick Durbin (D-Ill.) and Sheldon Whitehouse (D-R.I.), as well as House Antitrust Subcommittee Chairman David N. Cicilline (D-R.I.). The purpose of this legislation is to make filing bankruptcy easier for individuals and families facing financial stress.

The following are comments by Senator Warren:

“Our bankruptcy system too often fails to provide financially struggling individuals and families the relief they desperately need.” The Consumer Bankruptcy Reform Act of 2020 will take long, overdue steps to make it easier and less expensive for financially-strapped families and individuals to obtain meaningful bankruptcy relief and give Americans a better chance to get back on their feet.”

The following are comments by Senator Nadler:

“Bankruptcy is an option of last resort, but it also promises a fresh start so that people can get back up and keep working and providing for their families.  Today that promise rings hollow for many people because the bankruptcy system has become complex, unfair, and even punitive for ordinary consumers. The Consumer Bankruptcy Reform Act ensures that the bankruptcy system works for the American people and not just big corporate creditors. Senator Warren and I have worked on this issue for many years, and I look forward to continuing our fight for consumers with this new legislation.”

The still ongoing COVID-19 pandemic continues to have negative economic effects on millions of Americans. Many are unemployed or have excessive medical, student loan, or mortgage debt. Recent data shows that a wave of bankruptcies is imminent.

“All of us in the field are expecting bankruptcies to spike up dramatically, probably later this year and even more so into the New Year as the longer-lasting effects of the pandemic hit people in the wallet,” says Ike Shulman, bankruptcy lawyer and co-founder of the National Association of Consumer Bankruptcy Attorneys (NACBA), a Washington, D.C.-based professional group.

While the bankruptcy business has seen sharp increases in demand in the past—more on that in a moment—there is something different this time. “What we’re seeing with Covid-19 is that there are so many people that never dreamed they’d be talking to a bankruptcy lawyer or having to file bankruptcy. That wasn’t in their wildest dreams,” Shulman says.

Americans are currently facing unimaginable challenges even as the coronavirus pandemic seems better under control. Bankruptcy remains a viable, effective option to addressing the financial upheaval caused by the pandemic. The experienced attorneys at the Morrison Law Group are adept at making the lives of bankruptcy debtors easier by handling all the important and complicated aspects of a bankruptcy case.

The Consumer Bankruptcy Reform Act will help Americans deal with their severe financial problems. The CBRA will:

  • Make it easier and less expensive for financially-strapped families and individuals to obtain financial relief.
  • Ensure that filers can care for themselves and their families during the bankruptcy process.
  • Help address racial and gender disparities in the bankruptcy system.
  • Close loopholes that allow the wealthy to exploit the bankruptcy system, including the “Millionaire’s Loophole” and “spendthrift clause loophole.”
  • Place a special focus on predatory practices and hold corporate wrongdoers accountable.

Hearings, § 341 meetings, and other court dates are being held telephonically at all United States Bankruptcy Court locations for the District of Utah. The current procedures in force provide no restriction on anyone in Utah filing a bankruptcy case. All bankruptcy cases are initiated and filed through an electronic online process and the Morrison Law Group is available for expert and experienced assistance.

The Morrison Law Group’s website contains everything you need to help anyone file a Chapter 7 or Chapter 13 bankruptcy case. The Morrison Law Group is open from 8:00 a.m. to 5:00 p.m. Monday through Friday. Our attorneys and staff are standing by and ready to help any Utah resident file a bankruptcy case from the comfort and safety of their home. Each of our locations in Ogden, Logan, Sandy, and St. George are set up so you can do everything from the comfort and safety of home. Call 801.456.9933 today to schedule a free consultation. We are Utah’s only statewide bankruptcy law firm and serve the residents of the counties of Weber, Cache, Salt Lake, Utah, Morgan, Davis, Washington, and surrounding areas.

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