Replace the consumer bankruptcy system with one flexible process

Warren proposes repealing harmful provisions of the 2005 bankruptcy law and replacing the separate Chapter 7 and Chapter 13 systems and means test with one process available to all consumers. Filers would disclose their debts, assets and income, then choose options such as surrendering non-exempt property to discharge debts, addressing a specific problem like mortgage delinquency, or using a repayment plan. Certain debts would remain non-dischargeable, and creditors could challenge cases for abuse, with an easier standard for higher-income debtors.

Context: The proposal preserves non-dischargeable debts and allows creditors to challenge cases for abuse.

In their own words

My plan does away with means testing and the two chapters for consumer debtors. Instead, it offers a single system available to all consumers.

The source

Fixing Our Bankruptcy System to Give People a Second Chan...

Published: Original date not established; campaign context manually checked
Retrieved: 11/12/2026