22 Jun 2005
Bankruptcy law not a friend to small business

Well, duh! What do you expect to get when you let one side of an issue (in this case, banks and creditors) write the defining legislation?

The new bankruptcy law that takes effect this October will hit small-business owners much harder than previously thought. That's the conclusion of a new study, which appears in the most recent issue of the California Law Review, by Robert Lawless, a law professor at the University of Nevada–Las Vegas, and Elizabeth Warren, a Harvard Law School professor. The law makes it more difficult to wipe away debt by mandating that bankruptcy filers pass a means test. For example, a petitioner with a family income greater than the state's median may have to enter a repayment plan.

(link) [U.S. News & World Report]

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