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Thursday, October 05, 2006

attorneys say new law is not steering people to chapter 13-they expect resurgence in activity

By ALAN WECHSLER, Business writer September 30, 2006 Almost a year after the U.S. Bankruptcy Law changed, the number of filings so far this year is little more than a third of the number filed in the same period in 2005. Lawyers acknowledge that the rules -- -- have kept some people from filing. But they say the rules aren't doing what they were supposed to, and they expect the numbers to pick up again in future. For instance, some lawyers say they are filing more Chapter 7s than Chapter 13s, though the new rules were supposed to encourage more Chapter 13s.

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