Table of Contents
- Proposed Reforms & Legislative Changes: What’s on the Horizon?
- Why Bankruptcy Reform Is a Hot Topic
- Proposed Reforms in Consumer Bankruptcy
- 1. Easing Student Loan Discharge
- 2. Creating a Single Bankruptcy Chapter for Consumers
- 3. Improving Debtor Protections and Lowering Costs
- Business Bankruptcy Reform Proposals
- 1. Expanding Subchapter V (Small Business Chapter 11)
- 2. Streamlining Bankruptcy for Gig Workers and Sole Proprietors
- Technology-Driven Legislative Trends
- 1. Regulating Digital Asset Disclosures
- 2. Online Filing and Remote Hearings
- The Role of Advocacy and Consumer Organizations
- How a Bankruptcy Attorney Near You Can Help You Stay Ahead
- ReferU.AI Matches You With Forward-Thinking Legal Experts
- Final Thought: The Future of Bankruptcy Is Being Written Now
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As bankruptcy law evolves in response to economic changes and societal needs, understanding the proposed reforms and legislative changes is essential for individuals considering bankruptcy. This blog post explores the latest developments in consumer and business bankruptcy, highlighting how an attorney near you can assist in navigating these changes effectively.
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Discover the latest proposed reforms and legislative changes in bankruptcy law, designed to create a more equitable and efficient system. Stay informed on how these developments might affect you and learn how a bankruptcy attorney near you can help navigate the evolving landscape.
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Mar 30, 2025 07:46 PM
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Proposed Reforms & Legislative Changes: What’s on the Horizon?
Bankruptcy law isn’t static—it evolves alongside the economy, technology, and social priorities. Over the past few years, lawmakers and legal scholars have proposed a range of reforms aimed at making the bankruptcy system more equitable, efficient, and accessible. If you’re considering bankruptcy—or simply want to stay informed—it’s important to understand what’s on the legislative horizon.
In this post, we’ll explore the most discussed proposals in Congress, potential shifts in federal rules, and how a bankruptcy attorney near you can help you navigate this changing landscape.
💡 For every post in this series, scroll down to “Related Posts.”
Why Bankruptcy Reform Is a Hot Topic
- Rising student loan burdens
- Increased reliance on consumer credit
- Pandemic-driven economic fallout
- Digital asset growth and financial innovation
All of these factors have spotlighted weaknesses in the current system—and fueled calls for change.
Proposed Reforms in Consumer Bankruptcy
1. Easing Student Loan Discharge
One of the most significant reform proposals involves making it easier to discharge student loans. Currently, student debt is only dischargeable under strict hardship tests. Proposed changes would:
- Allow automatic discharge after 10 years
- Eliminate the “undue hardship” standard
- Apply retroactively in some versions
2. Creating a Single Bankruptcy Chapter for Consumers
Some lawmakers propose replacing Chapters 7 and 13 with a unified consumer bankruptcy system, streamlining filings and reducing complexity for low- and middle-income filers.
3. Improving Debtor Protections and Lowering Costs
Other ideas include:
- Capping attorney fees
- Simplifying filing paperwork
- Expanding access to legal representation for low-income filers
Business Bankruptcy Reform Proposals
1. Expanding Subchapter V (Small Business Chapter 11)
Congress is considering permanently raising the Subchapter V debt limit to allow more small businesses to reorganize affordably. Current temporary limits may expire unless extended.
2. Streamlining Bankruptcy for Gig Workers and Sole Proprietors
With more people working as freelancers or independent contractors, there’s growing support for better legal treatment of business debts and income classification in bankruptcy for non-traditional workers.
Technology-Driven Legislative Trends
1. Regulating Digital Asset Disclosures
As explored in Digital Assets & Cryptocurrency in Bankruptcy: Special Considerations, new legislation may require clearer guidelines for how to disclose, value, and treat crypto holdings in bankruptcy filings.
2. Online Filing and Remote Hearings
The pandemic accelerated digital court innovation. Proposed reforms seek to:
- Make online filing permanent and accessible
- Increase use of virtual creditor meetings and remote hearings
The Role of Advocacy and Consumer Organizations
Groups like the National Consumer Law Center (NCLC) and American Bankruptcy Institute (ABI) are actively lobbying for:
- Expanded debtor education programs
- Fairer treatment of low-income filers
- Reducing racial and regional disparities in bankruptcy outcomes
How a Bankruptcy Attorney Near You Can Help You Stay Ahead
New laws may shift what debts are dischargeable, how cases are structured, and how long the process takes. A bankruptcy attorney near you stays current with these changes and can:
- Advise you on how reform bills might affect your case
- Help you time your filing strategically based on proposed legislation
- Ensure your documents and strategies comply with evolving standards
ReferU.AI Matches You With Forward-Thinking Legal Experts
ReferU.AI connects you with a bankruptcy attorney near you who doesn’t just file paperwork—they anticipate change. Our platform matches you with professionals who track reforms, tech advancements, and legislative shifts to protect your long-term interests.
Final Thought: The Future of Bankruptcy Is Being Written Now
If you’re exploring bankruptcy today, you’re entering a system in flux. Stay informed. Ask questions. And lean on experienced legal guidance that can adapt with the times. What’s on the horizon could significantly shape how you move forward.
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