One Million Personal Bankruptcies a Year: Economic Implications and Policy Options

Publication Date: May 1998

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Banking and finance

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Abstract:

This report examines various explanations for the rapid rise in personal bankruptcy filings in the United States since 1980, the economic significance of the phenomenon, and policy options. This discussion and analysis provide a background for consideration of legislation before the 105th Congress ( H.R. 3150 and S. 1301), which proposes to reform the consumer bankruptcy process. For a more detailed analysis of these proposals, see CRS Report 98-276 A. This report, which does not assume extensive familiarity with bankruptcy law, will be updated as legislative developments warrant or as new economic data become available.