Bankruptcy Reform and Foreclosures
10 Pages Posted: 8 Jul 2008
Date Written: July 2, 2008
The Bankruptcy Abuse and Protection Act (BAPCPA) (2005) by making it more difficult and costly for marginal homeowners to utilize the bankruptcy code, restructure their debts, and maintain mortgage payments, increased foreclosures and the number of homes for sale. BAPCPA was intended to help creditors at the expense of debtors. However, the negative impact of BAPCPA on real estate markets appears to have damaged the balance sheets of both debtors and creditors.
Keywords: personal bankruptcy, personal finances, financial institutions, consumer debt, mortgages
JEL Classification: G18, G21, K35
Suggested Citation: Suggested Citation