The Bankruptcy Reform Act of 1978
The current bankruptcy code that regulates all forms of bankruptcy in the United States today was enacted as part of the Bankruptcy Reform Act of 1978. This act completely replaced the former and original bankruptcy act, the Bankruptcy Act of 1898, also known as the Nelson Act.
One major accomplishment of the Bankruptcy Reform Act of 1978 was to prohibit employment discrimination against people who have declared bankruptcy. If you are concerned about experiencing such discrimination post-bankruptcy or have other concerns about the process, contact the Boca Raton bankruptcy attorneys of Eric N. Klein & Associates, P.A. by calling 561-353-2800 today.
Changes Made by the Act
The aforementioned protection against employment discrimination is a very important component of the Bankruptcy Act of 1978. However, the Act also accomplished many other important things. For example, the Act:
- Established United States Bankruptcy Courts in each federal judicial district
- Added new chapters for business reorganization
- Established Chapter 13, which provides a way for debtor to repay their creditors without being forced to liquidate their assets
- Made it substantially easier for both business and individuals alike to file for bankruptcy
Prior to the Bankruptcy Reform Act of 1978, there were many loopholes in the bankruptcy system which allowed for certain injustices. Fortunately, the Act addresses many of these issues.
Contact Us
If you are considering filing for bankruptcy, it is very important to fully understand all of the relevant legislation. To learn more, contact the Boca Raton bankruptcy attorneys of Eric N. Klein & Associates, P.A. by calling 561-353-2800 today.
