U.S. Bankruptcy Code
Highlights of the Current System
The current bankruptcy code was enacted in 1978. It replaced and repealed in its entirety the pre-existing Bankruptcy Act of 1898. In 1970, when Congress perceived the need to modernize the bankruptcy laws, it created a Commission on the Bankruptcy Laws of the United States to study and recommend changes in the law. The commission filed its final report with the Congress on July 30, 1973. In 1994, Congress created another commission, the National Bankruptcy Review Commission (NBRC), to study and report recommendations for legislative change. The NBRC adopted as many as 172 recommendations dealing with, inter alia, consumer bankruptcy,…
