Bankruptcy Reform Act of 1994

The Bankruptcy Reform Act of 1994 made significant changes to U.S. bankruptcy laws to address issues in the system. It aimed to reduce bankruptcy abuse by introducing stricter eligibility requirements for Chapter 7 filings, encouraging repayment under Chapter 13, and increasing transparency in financial disclosures. The reforms heightened the responsibilities of bankruptcy attorneys and established guidelines to help judges assess a debtor's financial capability. Overall, the law sought to balance the needs of creditors and debtors, making the bankruptcy process more efficient and equitable while promoting responsible financial behavior.