Filings Tumble Following Bankruptcy Reform


In the first full year the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 was in effect, bankruptcy filings fell 70% to 617,660, the lowest number since 1988.

Filings involving business debts totaled 19,695, down 50% from almost 40,000 in 2005, while non-business filings dropped 71%, from more than 2 million in 2005 to 597,965.

BAPCPA established a needs-based formula that determines whether debtors are eligible to file under Chapter 7 (where all unsecured debts are generally discharged) or should be converted to Chapter 13 (where at least a portion of debts are paid). The test resulted in a 78% decline in Chapter 7 filings.

Other consumer and commercial bankruptcy provisions of the act are available at the AICPA’s Personal Financial Planning Center at http://pfp.aicpa.org.

Source: www.uscourts.gov.

SPONSORED REPORT

Keeping client information safe in an age of scams and security threats

A look at the Dirty Dozen tax scams and ways to protect taxpayer information.

TECHNOLOGY Q&A

How to create maps in Excel 2016

Microsoft Excel 2016 has two new mapping capabilities. J. Carlton Collins, CPA, demonstrates how to make masterful 2D and 3D maps in Excel 2016.

QUIZ

News quiz: IRS enforcement, a hot job, and audit value

The IRS’s 2016 Data Book, a “hot job” of particular interest at this time of year, and insight into how executive and audit committees view the insights from financial statement audits received attention recently. See how much you know with this short quiz.