Workload Up in Bankrutpcy Courts

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An August report by the Administrative Office of the U.S. Courts to the House and Senate Committees on Appropriations contains a few interesting data nuggets about how BAPCPA is affecting the bankruptcy judicial system. A few quick highlights: 1) Preliminary analysis indicates that BAPCPA caused a 10 percent increase in the staffing requirements of the bankruptcy courts. The report notes that while courts will work harder, the effect on judges remains unclear.  2)  The AO apparently counted them up! The new law creates more than 35 different types of motions, objections and hearings that did not exist before. 3) The report offers that "most judges believe" that case filings will return to pre-BAPCPA levels.

The aggregate effect of these changes is that the entire bankruptcy system will likely be bigger, more complex, and more costly in the future. The report has no answers about how to pay for the changes BAPCPA is bringing about in the court system, but does express concern that if the number of in forma pauperis debtors climbs from the 2% rate that has been established in the months immediately after BAPCPA, that this loss of filing fees could be a significant hit on the revenue available to run the bankruptcy courts.