Progress 05/16/09 to 05/16/12
Outputs
OUTPUTS: Data about the influence of Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005 was collected. The U.S. and the District of South Carolina bankruptcy filings were compiled from surveys, interviews of bankruptcy filed, attending court proceedings and retrieving bankruptcy data from the Public Access to Court Electronic Records (PACER) system online. Numerous amounts of raw data collected over the life of the project were analyzed and its patterns and trends assessed. Categories of the data were gathered included loss of jobs, medical bills, mortgage problems and credit cards, as well as other consumer debts. It became evident that medical expenses caused most of bankruptcy filings. Researchers observed that filings increased sharply until the law was enacted on October 17, 2005. Consequently, filings plummeted in 2006 and 2007. After those two years, filings began to gradually rose, but had not reached pre-BAPCPA levels by 2011. PARTICIPANTS: Participants in terms of work are the five students who worked with me over the three years. They did not all work at the same time. I had two students in the first two years and three students in the third year (final year). Outside campus, the research team had a few interviewees. Most people declined to be interviewed. Seemingly, the interviewees who decline the interviews suspected that the research team would inform IRS concerning their incomes. TARGET AUDIENCES: There was no target audience. Instead, we targeted the South Carolina population for surveys. However, for PACER selection, researchers chose cases (not names) because some filers were single, married or divorced. PROJECT MODIFICATIONS: Project modifications were not needed. The project was straightforward except that it was not always easy to get bankruptcy filers in the sample to participate. The majority of people who received surveys never responded to the inquiry. Data obtained from the court house and federal archive through PACER, however, went very well. Payment was made to obtain access to the files online, since bankruptcies are public information.
Impacts
Major outcomes of the research appertain to the effects of BAPCPA. Researchers examined bankruptcy data from 2003 to 2011 (inclusive) to identify and specify patterns in bankruptcy trends before and after the new law. Then, the research team evaluated those statistics in view of the original purpose of bankruptcy protection as it is provided in the Constitution of United States under Title11 and Uniforms Laws. The Constitutional provision was meant to help people and businesses by allowing them to file for bankruptcy, pay what they the bankruptcy court had mandated and the remaining debt obligation could either be written off or paid over a 5 year period following a court payment plan. Only federal courts have jurisdiction over bankruptcy cases, except in situations where the courts have ceded power to various states to allow them to tailor solutions to their unique needs. Those situations include child support, alimony and homestead exemptions. Data obtained showed that the new law severely restricted bankruptcy filings in the South and throughout the U.S. After the new law was imposed, filings were cut so sharply that some scholars believe BAPCPA actually put more burden on the less fortunate and denied them a "fresh start", which the Constitution was actually meant to provide.
Publications
- Beraho, Enoch K.(2010-2011). Influence of Country Culture on Bankruptcy and Insolvency Legal Reform Management. International Journal of Management & Information Systems. Spring (Part 1) 2010-2011 (Volume 14, Number 1.
- Beraho, Enoch K.(2008). A Study of Bankruptcy Trends: Examples from USA, UK, Ukraine, Malaysia and China. Journal Problems and Perspectives in Management Vol. #3 #5.
- Beraho, Enoch K.(2008). A Study of Global Bankruptcy and Insolvency Trends and Reforms.Journal Practical Global Business Vol. 2 #3.
- Beraho, Enoch K.(2011). A Comparative Review of Bankruptcy Reforms in USA, UK, China and Malaysia. International Journal of Problems and Perspectives in Management Volume 9, Issue 3).
- Beraho, Enoch K. (2010).Influence of Country Culture on Bankruptcy and Insolvency Legal Reform Management. The Journal of American Academy of Business, Cambridge (JAABC)Part 2.
- Beraho, Enoch K.(2010). The History and Evolution of Bankruptcy as an International Strategic Management Tool. International Journal of Strategic Change Management Vol. 2 #1, pp 1-17.
- Beraho, Enoch K. (2010).Influence of African Growth and Opportunity Act (AGOA) on Sub-Saharan Strategic and Economic Development. Journal of Practical Global Business. January 2010 Edition Volume X, Issue #1.
- Beraho, Enoch K. (2007). Colonial History and its Effects on Sub-Saharan Economic Development International Journal of Cross Cultural Management Vol. 14 #3, 2007.
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Progress 01/01/11 to 12/31/11
Outputs
OUTPUTS: During this period more collection of data from courts were performed by the Principal Investigator. This was done to gain a sense of types and reasons for filing. The students collected bankruptcy filings from other countries to use for comparison with the USA's data. From the US data gathered, we will be able to identify cases that were converted from one chapter to another. This is important because one of the draw backs of the new law is that it is viewed as overly strict and defeating the original purpose of the bankruptcy concept whereby bankrupts are afforded relief to allow them to have "a fresh start" rather ruin their lives and existence just because they are insolvent. To be discerned from this information was probability of conversion whether it was more likely for the court to adjust a case from Chapter 13 to Chapter 7 or vice versa. Creditors would fight hard to keep the case in Chapter13 classification so the bankrupt pays something rather than be granted "total write off" of unsecured debt as would be the case under Chapter 7. Also in this period, names and addresses of 2009 bankrupt filers were added. The purpose of this was to complete sampling for the period to be studied under this project. Cases were also obtained from the website called Public Access to Court Electronic Records (PACER) for a fee. In addition to PACER data, some statistics were obtained through more direct interviews with a few people in the sample. But, since the project is entering its final quarter, compilation and tabulation of data has begun, and the two students are handling this aspect analysis. Although the project is about individuals' bankruptcy filers only, company failures provide information used to compare circumstances surrounding such failures. As such their information is of comparative value to the project. Indeed, some filers became bankrupt as a result of losing their jobs when the companies they worked for closed their doors. So, at least in some cases, bankruptcy filers may have been victims of business failures or some other related circumstances. PARTICIPANTS: Enoch K. Beraho, Ph. D. (Principal Investigator) Undergraduate students: Tana Isaac; Deedee Agu TARGET AUDIENCES: This is not the kind of project that targets audiences as it progresses. Instead, it targets a population of people who filed for bankruptcy under Chapter 13 (or Chapter 7, if converted from 13). Later, when the project is completed, information will be published and made available to researchers, universities, politicians, and any other interested people. Actually, the information obtained should be of interest to anyone who wants to know what the effects of the new law have been. Specifically, it would be appropriate for Legislators to draw their own conclusions as to whether or not the effects of the law are in line with the intents and purposes of the US Constitution under its "Uniform Laws" provision. At issue is whether the law (as written and implemented) affords "a fresh start" to individuals and businesses after suffering economic and social catastrophes brought about by heavy burdens of debt and lack of relief under the law. PROJECT MODIFICATIONS: Not relevant to this project.
Impacts
It is too early to assess the outcome of this research project beyond compilation of data which is being done at this time. Not withstanding, it is clear, from preliminary data that filing for bankruptcy is much harder under this law dubbed Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005 than it was under the old law it replaced. It seems that the only parties protected are creditors and other lenders. It is too early, though, to tell whether fraud has been reduced substantially enough to warrant stringency of this law's debilitating effects to ordinary filers. Reduction of fraud, through reduction of abuse, is the cornerstone of BAPCPA. It is also noted that draconian as the new law may be, people seem to be finding ways of bypassing hurdles it puts in their way to filing. We can conclude that tentative ending because filings fell sharply soon after implementation of the law (2006), and since 2007 it began to rise again slowly but surely.
Publications
- Beraho, E., (2011). A Comparative Review of Bankruptcy Reforms in USA, UK, China, and Malaysia. International Journal of Problems and Perspectives in Management, 9(3).
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Progress 01/01/10 to 12/31/10
Outputs
OUTPUTS: In this period, 15 court hearings were attended by the principal investigator at the Bankruptcy Court in Columbia, South Carolina. At these selected case hearings information is taken that is unique to those cases. Most cases are simple filings and follow routine procedures. But there are some cases that are complicated and follow unique procedures conducted by attorneys and court trustees. This is important because one of draw backs of the new law is that it is viewed as overly strict and defeating the original purpose of the bankruptcy law which to give filers "a fresh start" rather ruin their lives and existence just because they are broke. Also in this period, names and addresses of bankruptcy filers from 2004 to 2008 were identified. The purpose of this is to select a sample of filers and survey them in the near future. Names are readily available from court records in Columbia. Cases can also be accessed from the Website called Public Access to Court Electronic Records (PACER) for a fee. There are also hard copies available at the Federal Archives Depository in Ellenwood, Georgia. For such cases, arrangements were made to visit the archives a few time in 2010. PACER will be the main focus in 2011. In addition to approaches mentioned above, some direct interviews were conducted with individuals who were willing to express their views about the new filing process. Also, the PI and the student worker collected data from some of the businesses which filed for bankruptcy from 2004 to 2005. We will continue to search for that kind of information year by year until 2008. Although the project is about individuals only, company failure provide information used to compare circumstances surrounding such failure. As such their information are of comparative value to the project. Indeed some filers became bankrupt as a result of losing their jobs when the companies they worked for closed their door. So, there is some connection here. PARTICIPANTS: The only people who worked on this project are 1) the Student worker: Oyetayo Omotosho and 2) the PI: Enoch K. Beraho. TARGET AUDIENCES: This is not the kind of projects that targets audiences as it progresses. But on completion a comprehensive report will be written. The report should be available to researchers, educators and politician who are interested in the subject. Actually, Congressional members should get a copies of this report to see if its effects are what Congress expected and to see whether or not the its effects are in line with the constitution under its "Uniform Laws" provision. At issue is whether the law (as written and implemented) affords "a fresh start" to individuals and businesses to avert economic and social trauma brought about by heavy burdens of debt. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.
Impacts
The outcome cannot be measured yet beyond compilation of data which will be analyzed at a later date. Already it is clear, from preliminary data, that filing for bankruptcy is much harder under this law dubbed Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005 than it was under the old law it replaced. It seems that the only parties protected are creditors and other lenders. It is too early to tell whether fraud has been reduced substantially enough to warrant stringency of this debilitating magnitude to ordinary filers. Reduction of fraud, through reduction of abuse, is the cornerstone of BAPCPA.
Publications
- Beraho, Enoch, K. (2010). Influence of Country Culture on Bankruptcy and Insolvency Legal Reform Management (Part 2). The Business Review, Cambridge, Vol. 16 #2, December 2010: 78-83. Beraho, Enoch, K. (2010). The History of and Evolution of Bankruptcy as an International Strategic Tool.International of Journal Strategic Change Management, Vol. 2 ( 1), 2010; 1-17.
- Beraho, Enoch, K. (2010). Influence of Country Culture on Bankruptcy and Insolvency Legal Reform Management (Part 1), . International Journal of Management Information Systems, Vol. 14 (2) Second Quarter,2010: 39-49.
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Progress 01/01/09 to 12/31/09
Outputs
OUTPUTS: During the reporting period, work on the new three-year project began. A database of the bankruptcy filers was developed and some data was gathered from court files. Visitations to some courts and a few filers were conducted in order to assess the best way of approaching the issue of bankruptcy and its consequences on minorities in the State of South Carolina. PARTICIPANTS: The principal investigator and 2 graduate students are working on this project. TARGET AUDIENCES: The target audiences are universities, schools, research institutional and government agencies, including political bodies. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.
Impacts
Bankruptcy filings are indications of the health of the economy at the time bankrupt people file. Filings could be for good reasons or for sinister reasons. The original purpose of bankruptcy (as spelt out in the US constitution) was to afford people and businesses, in financial difficulties, another chance of having a new beginning, recover and become productive again. The cynics view bankrupt filers as cheats who are playing a game so as to retreat from their financial obligations. From June 1st, 2009 to December 31st, 2009, the Principal Investigator and two students embarked on data base building for bankrupt filers whose cases will be included in this study. The study is limited to individual and small business bankruptcy cases filed between January 2003 and December 2010. In other words data base will continue to be built so that the sample includes filers for those 8 years. Data gathered during the current project are meant to reveal major factors underlying invocation of bankruptcy protection. Current studies will examine trends in bankruptcy filings, from year to another, beginning with 2003 and ending with year 2010. Since the project has just started, little data has been gathered so far. The work of compiling a list of filers and their addresses, however, has gone well. So far 1,750 addresses have been retrieved from the Federal Archives in Atlanta, Public Access to Court Electron Records (PACER) or from the District of Columbia and its two satellites stations: Charleston and Spartanburg. A survey instrument has been developed and letters will begin to go out in April to known addressees. As time goes on, more and more surveys will be mailed out. The surveys are designed to identify factors involved in bankruptcy. Factors such as gender, income, medical expenses and consumer debt have been included in the survey.
Publications
- No publications reported this period
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