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The number of Chattanoogans going broke fell last year to the lowest level in 13 years as a growing economy helped trim the number of bankruptcy filings by more than 7 percent from the previous year. But Tennessee, Georgia and Alabama continued to lead the nation in the rate of bankruptcy filings in 2019, according to ABI, the Chattanooga (Tenn.) Times Free Press reported. "We do tend to see more people seeking bankruptcy protection in states like Tennessee, Georgia and Alabama with nonjudicial foreclosure and wage garnishment laws that allow creditors to foreclose on homes or garnish wages without having to go to court, in most instances," said Larry Ahern, a bankruptcy lawyer and adjunct professor of law at Vanderbilt University who previously practiced in Chattanooga. Chattanoogans are far more likely to try to reorganize their finances in bankruptcy court under a chapter 13 filing, rather than simply try to cancel their debts and liquidate their holdings under a chapter 7 filing. Last year, nearly 60 percent of the bankruptcies filed in Chattanooga were chapter 13 filings. Nationwide, about 60 percent were chapter 7 filings by consumers.

Sen. Elizabeth Warren’s new consumer bankruptcy plan aims squarely at unwinding one of former Vice President Joe Biden’s chief legislative accomplishments, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), according to commentary from Georgetown Prof. Adam J. Levitin in The American Prospect. The bankruptcy bill was perhaps the most anti-middle class piece of legislation in the past century. It was also Warren’s introduction into the bare-knuckle world of legislative politics. She fought the bill tirelessly and succeeded in blocking it for nearly a decade. Her new plan makes clear that she hasn’t given up the fight. Biden’s support for BAPCPA is well known, but his numerous roll call votes on amendments to the bill have never been previously examined. Warren’s plan draws sharp attention to these votes by adopting many of the very positions Biden opposed. An examination of Biden’s roll call votes paints a very different picture of Biden’s involvement with the bill than the vice president likes to present. The record makes clear that as a senator, Biden used his clout to push for the law’s passage and to defeat amendments to shield servicemembers, women, and children from its harsh treatment. When votes were taken, “Middle-Class Joe” was no friend to the middle class. Not only did the law discourage bankruptcy filings, but it made it harder to wipe out credit card debt and student loans in bankruptcy. The result was greater profits for consumer lending businesses, many of which are based in Biden’s state of Delaware. Not surprisingly, then, by lowering the risk of bad lending decisions, the Biden bankruptcy bill unleashed a glut of aggressive private student lending, which has contributed to the massive rise in student loan debt.