Jump to ContentJump to Main Navigation
Bankrupt in AmericaA History of Debtors, Their Creditors, and the Law in the Twentieth Century$
Users without a subscription are not able to see the full content.

Mary Eschelbach Hansen and Bradley A. Hansen

Print publication date: 2020

Print ISBN-13: 9780226679563

Published to Chicago Scholarship Online: September 2020

DOI: 10.7208/chicago/9780226679730.001.0001

Show Summary Details
Page of

PRINTED FROM CHICAGO SCHOLARSHIP ONLINE (www.chicago.universitypressscholarship.com). (c) Copyright University of Chicago Press, 2022. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in CHSO for personal use.date: 19 May 2022

The Renegotiation of the Relationship between Consumers and Their Creditors

The Renegotiation of the Relationship between Consumers and Their Creditors

(p.107) Chapter Five The Renegotiation of the Relationship between Consumers and Their Creditors
Bankrupt in America

Mary Eschelbach Hansen

Bradley A. Hansen

University of Chicago Press

Pro-creditor garnishment law was a key driver of the bankruptcy rate for the first two-thirds of the twentieth century, but it did not survive the consumer rights movement of the 1960s. By 1970, Congress and the Supreme Court limited the ability of states to maintain and enforce pro-creditor collection laws. Chapter 5 shows that the federal restrictions on garnishment law, especially the Consumer Credit Protection Act, reduced the state-to-state variation in the bankruptcy rate and caused the national bankruptcy rate to level off. Although the growth of bankruptcy in the 1950s and 1960s led to calls for reform of federal bankruptcy law, the effort moved slowly. By the time recommendations for bankruptcy reform were made to Congress, bankruptcy rates were no longer regarded as a problem. Almost all of the changes to personal bankruptcy in the 1978 Bankruptcy Reform Act encouraged debtors to file.

Keywords:   Consumer rights, Bankruptcy Reform Act, garnishment, Consumer Credit Protection Act, Supreme Court

Chicago Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us.