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Significant Consumer Bankruptcy Reforms Introduced

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In a Nutshell

On December 9, 2020 Senator Elizabeth Warren and House Judiciary Committee Chairman Jerrold Nadler introduced the Consumer Bankruptcy Reform Act of 2020 to simplify the consumer bankruptcy laws.

Written by Attorney Andrea Wimmer.  
Updated December 10, 2020


The Act is a sweeping reform to existing consumer bankruptcy laws, eliminating burdensome requirements like the means test and pre-bankruptcy credit counseling, making the discharge of student loans automatic and simplifying the system by giving all consumers the ability to file the same type of bankruptcy - the newly created Chapter 10. For more on the Act, check out the official press release, and this two-page summary.

Senator Warren:

"Our bankruptcy system too often fails to provide financially struggling individuals and families the relief they desperately need. The Consumer Bankruptcy Reform Act of 2020 will take long overdue steps to make it easier and less expensive for financially-strapped families and individuals to obtain meaningful bankruptcy relief and give Americans a better chance to get back on their feet."

Chairman Nadler: "Bankruptcy is an option of last resort, but it also promises a fresh start so that people can get back up and keep working and providing for their families. Today that promise rings hollow for many people because the bankruptcy system has become complex, unfair, and even punitive for ordinary consumers. The Consumer Bankruptcy Reform Act ensures that the bankruptcy system works for the American people and not just big corporate creditors. Senator Warren and I have worked on this issue for many years, and I look forward to continuing our fight for consumers with this new legislation."

Finally, remember that Congress works for you! If you think it's time the consumer bankruptcy laws be simplified (no more means test!), modernized (electronic signatures on the forms!), and make true debt relief possible by allowing the discharge of student loans, call your representatives and tell them to support this legislation.

Person with phone and phone number for Congress


Written By:

Attorney Andrea Wimmer

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Andrea practiced exclusively as a bankruptcy attorney in consumer Chapter 7 and Chapter 13 cases for more than 10 years before joining Upsolve, first as a contributing writer and editor and ultimately joining the team as Managing Editor. While in private practice, Andrea handled... read more about Attorney Andrea Wimmer

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