Economy of filing bankruptcy 101

In one of the more surprising that I am come in sometime news, the number of people filing bankruptcy almost reached levels of pre-BAPCPA, despite eligibility requirements more stringent and imposed charges higher than the filing of the BAPCPA. One of the most fundamental principles of the economy, the law of supply and demand, dictates that the number of bankruptcies filed must descend file cost increases. So what gives?

But before entering the response, a little bit of information. For those of you who don't know, BAPCPA means the bankruptcy Abuse Prevention and Consumer Protection Act. For a little bankruptcy practitioners is known as the Act of bankruptcy reform fiasco (I'll let you discover the acronym). He imposed the well-known means test and makes generally more expensive to file bankruptcy.How these changes protect consumers isn't me. perhaps Congress likes just give names Orwellian legislation.

Say get back to why the number of bankruptcies filed did not decrease even if filing fees spent.I think that the explanation lies in an economy concept called the simple terms demande.En elasticity, elasticity is defined as change percentage amount required in response to a change of one percent of price (constantly hold determinants of demand, such as income). It is important to keep in mind that elasticity varies greatly depending on what good economic is analyzed.

For example, the elasticity of a products database as the corn is high.If the price increases, people consume much less thereof .they can switch easily eating other foods.At the other extreme is a product like insulin.If a person with diabetes die quickly without insulin, even if the price goes back many a diabetic is still pending to purchase.

Given that the number of bankruptcies has not significantly decreased even if its price is gone, it seems likely that the bankruptcy, such as insulin, are a low elasticity of demand tarifaire.Cette conclusion is not surprising to me as a bankruptcy attorney since no one that I've ever met files bankruptcy unless they have no other option.Apparemment this bougèrent not to Congress when they adopted the Act, the Bankruptcy Abuse Prevention.À the end of the day, the result of the BAPCPA seems to be that it imposes additional costs (i.e. that it punishes) persons at a time where they can be least permettre.Avec Consumer Protection Acts like that, that consumers have enemies?

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