Bankruptcy laws have undergone significant changes over time in response to various economic and societal factors. One of the major changes was the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005, which made it more difficult for individuals to file for Chapter 7 bankruptcy and increased the documentation requirements for all bankruptcy filings. Currently, there are six different chapters under the Bankruptcy Code. Chapter 7 is the most common and involves the liquidation of assets to pay off creditors. Chapter 11 is used primarily by businesses to reorganize their debts, while Chapter 12 is specific to family farmers and fishermen. Chapter 13 involves a repayment plan for individuals with a steady income, and Chapters 9 and 15 are reserved for municipalities and international cases, respectively. Most people file for bankruptcy due to overwhelming debt and the inability to repay creditors. It is a legal process that allows individuals and businesses to obtain relief from debt and make a fresh start. The ethical considerations of the Bankruptcy Code are a matter of debate. Some argue that it is ethical to allow individuals and businesses to discharge debt and start over, while others believe that it can be used as a way to avoid financial responsibility. The philosophy behind the Bankruptcy Code is to balance the interests of creditors and debtors while providing relief for those who are struggling financially. The Code seeks to provide a fair and efficient process for resolving financial difficulties and allows for a fresh start for individuals and businesses that have fallen on hard times. Sources: BO Cornell Law School Legal Information Institute. Bankruptcy Code. https://www.law.cornell.edu/uscode/text/11 American Bar Association. Bankruptcy Basics. https://www.americanbar.org/groups/public education/resources/law issues_for_consumers/bankruptcy! Congressional Research Service. Bankruptcy Reform: Overview and Comparison of Current Law with H.R. 3648 https://www.everycrsreport.com/files/20071203 RS22615_20c79c6bc2df038c9a3099c579940e54d6b73a39.pdf Quote Email Author 3:37