Legislative Background
Recent Action on Bankruptcy Reform Legislation
The current Bankruptcy Code, enacted in 1978, was based on the recommendations of the 1973 Commission on Bankruptcy Laws. In 1994, Congress created another Commission, the National Bankruptcy Review Commission (NBRC), to consider proposals for further changes in the Code and make recommendations to Congress. At the time, there were no calls for major reforms, and the Commission, while issuing a set of proposals, did not advocate any change in the basic structure of the system. Since the NBRC issued its report in 1997, however, bankruptcy filings have increased at record rates, leading Congress to reevaluate its satisfaction with the…
