The 2005 bankruptcy reform law has made the bankruptcy system costlier and more cumbersome for debtors and bankruptcy professionals, according to a study released by the American Bankruptcy Institute.
Since the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 took affect, debtors' attorneys' fees plus fining fees and debtor education fee have increased the cost of Chapter 7 (liquidation) cases with no assets 51% and for Chapter 7 cases with assets 37%, the study found.
The attorney fees increased 30% to $1,072 for Chapter 7 asset cases.
In Chapter 13 (individual reorganization) cases, filing fees increase 27% in discharged cases and 24% in dismissed cases. Attorney fees rose 24% to $2,564.
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