Professor Zywicki Talks to the Chicago Tribune About the New Bankruptcy Law
Professor Todd Zywicki's remarks were featured in a recent Chicago Tribune article that looked at some possible effects of the new bankruptcy law scheduled to take force on October 17.
Bankruptcy filers have to jump higher; With costs rising, small businesses may be affected the most by changes in federal law that take effect later this month, Chicago Tribune, October 2, 2005. By Susan Diesenhouse.
"Supporters of the new law said it seeks a better balance between allowing debtors a fresh start and demanding responsibility. 'It tries to crack down on abuse,' said Todd Zywicki, a professor at George Mason University School of Law, who has promoted the law since 1997 and worked with congressional Republicans to draft it."
The article point goes on to point out that "Individual and business filings -- which are up sharply in recent months in response to the legislation -- totaled nearly 1.6 million last year, up from nearly 300,000 in 1978, the year of the last major overhaul of the law.
Zywicki said that jump comes despite the economic prosperity of the ensuing decades, which he measures by low unemployment and interest rates and a stable divorce rate. 'The plausible expanation is that people are filing for bankruptcy not because they have to, but as a tool of convenience,' he said."