« The 33% Solution | Main | Judge Edith Jones & "Political Activity?" »

Anniversaries and Audits

posted by Melissa Jacoby

On a week of anniversaries relevant to bankruptcy reform and policy, it is worth noting that exactly 9 years ago, the National Bankruptcy Review Commission filed its final report.  The second proposal in this telephone-book-sized report was for random audits (proposal number 1.1.2) that, in a more detailed iteration, becomes operational today via section 603 of the 2005 bankruptcy amendments as Bob has noted.  Unlike other personal bankruptcy proposals discussed in the Commission Report, this one had widespread (indeed, possibly unanimous) support among the members of the Bankruptcy Commission who otherwise had fundamental descriptive and prescriptive disagreements about the personal bankruptcy system.   As Bob's 33% Solution post illustrates, however, Congress insisted on putting some consequential details in the statute that, if put into practice literally, undercut some of the justifications for the otherwise-popular audit proposal.   Now others are charged, within these constraints, to try to implement the concept in a cost-efficient and effective manner (for how the U.S. Trustee program is approaching this, see the press release here and 71 Fed. Reg. 58005 (Oct. 2, 2006)).


Current Guests

Follow Us On Twitter

Like Us on Facebook

  • Like Us on Facebook

    By "Liking" us on Facebook, you will receive excerpts of our posts in your Facebook news feed. (If you change your mind, you can undo it later.) Note that this is different than "Liking" our Facebook page, although a "Like" in either place will get you Credit Slips post on your Facebook news feed.

News Feed



  • As a public service, the University of Illinois College of Law operates Bankr-L, an e-mail list on which bankruptcy professionals can exchange information. Bankr-L is administered by one of the Credit Slips bloggers, Professor Robert M. Lawless of the University of Illinois. Although Bankr-L is a free service, membership is limited only to persons with a professional connection to the bankruptcy field (e.g., lawyer, accountant, academic, judge). To request a subscription on Bankr-L, click here to visit the page for the list and then click on the link for "Subscribe." After completing the information there, please also send an e-mail to Professor Lawless (rlawless@illinois.edu) with a short description of your professional connection to bankruptcy. A link to a URL with a professional bio or other identifying information would be great.