In order to prevent debtors from misusing the provisions of the Bankruptcy Code,the scope of dismissal of a bankruptcy petition has been widened to a broader interpretation of abuse,and not just restricted to substantial abuse.

Question

Quizplus · Accepted Answer

In 1984,Congress,concerned that too many individuals with an ability to pay their debts over time pursuant to a Chapter 13 plan were filing petitions to obtain Chapter 7 discharges of liability,authorized the Bankruptcy Courts to dismiss cases that they determined were a substantial abuse of the bankruptcy process.In the 2005 amendments,Congress reduced the standard for dismissal from "substantial abuse" to just "abuse."

In Order to Prevent Debtors from Misusing the Provisions of the Bankruptcy