Virtually from the enactment of the Bankruptcy Code in 1978, creditors attempted to roll back what they perceived to be the Code's undue bias toward bankrupts. The Code was branded a debtor's paradise practically beckoning borrowers to shed their debts painlessly and needlessly. It was certainly true that the number of bankruptcy filings rose substantially during the late 1970's and early 1980's, and that some creditors attributed at least some of this to the Code's presumed generosity. Whether the Code actually caused any of the increase in filings is, to put it mildly, controversial. Other factors, most significantly the general economic malaise of the past fifteen years, undoubtedly played a far larger role. Yet the perception that the Code was little more than a charter for deadbeats was not entirely baseless. It was, at least in theory, possible for some debtors to use the Code to shed debts which they were able to pay without hardship.
Paul M. Black & Michael J. Herbert,
Bankcard's Revenge: A Critique of the 1984 Consumer Credit Amendments to the Bankruptcy Code,
U. Rich. L. Rev.
Available at: https://scholarship.richmond.edu/lawreview/vol19/iss4/11