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Unpublished Paper
Honesty is the Best Policy: Why Good Faith Should Be Required in Chapter 7 Bankruptcies Under § 707(a)
ExpressO (2014)
  • Justin Forcier
Abstract

A circuit split exists in today’s bankruptcy courts over whether § 707(a) of the Code requires a debtor to file his Chapter 7 petition in good faith. Some courts have failed to recognize that allowing bad faith petitions to move forward does not align with the spirit of the bankruptcy system and creates a greater and unnecessary burden on those courts and creditors. Therefore, courts should find there is a good-faith requirement in the Code under § 707(a), because finding so will promote continuity, allow those debtors who did file in good faith to receive a faster resolution, and promote a more fair and equitable trade off for creditors. This article is the first to support a good-faith finding in § 707(a). Previous articles supporting the opposite finding have failed to realize the practical implications of allowing bad-faith debtors to take refuge in the safety of bankruptcy. This article is important because it is the first to walk through each of the arguments and policy reasons for finding good faith is not a requirement, and shows how each one falls short.

Disciplines
Publication Date
March 5, 2014
Citation Information
Justin Forcier. "Honesty is the Best Policy: Why Good Faith Should Be Required in Chapter 7 Bankruptcies Under § 707(a)" ExpressO (2014)
Available at: http://works.bepress.com/justin_forcier/1/