What do we know about Chapter 13 personal bankruptcy filings?

Since 1980, the number of households filing for bankruptcy has more than tripled. This drastic increase in personal bankruptcy filings led to substantial debate among economists and policymakers. That debate subsequently resulted in the enactment of extensive reforms in 2005 when Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act. Ultimately, the rationale for this legislation is the presumption that Chapter 13 leads to more appropriate outcomes compared with either Chapter 7 filings or other options outside bankruptcy. In “What Do We Know About Chapter 13 Personal Bankruptcy Filings,?” Wenli Li outlines the results of two recent studies that have taken a more detailed look at actual outcomes in Chapter 13. ; Also issued as Payment Cards Center Discussion Paper No. 07-17