I think back to the days of bankruptcy reform and to me the issue seemed like such a no-brainer. It was the duty of Congress to close the very obvious bankruptcy loopholes and make those who could afford to pay back their debt do so. But of course we all know you have to throw out common sense when you’re talking about Congress. It took years and years of debate to get meaningful legislation. It seemed so silly for it to drag out that long for a problem that was so pronounced.

Finally a bill was passed. I don’t think it had enough teeth, but it is moving more people into Chapter 13, where a portion of debt is repaid. The latest numbers show bankruptcy filings are still high, but Chapter 7 filings (where filers wipe their debt clean) have dropped 71% from the prior 12-month period, as more of these filers have been forced into Chapter 13.

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