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.