There is no justice guaranteed for the weak, disadvantaged, poor, or dispossessed. Debtors filing bankruptcy operate on a limited budget and simply want the nightmare to end. They want to get on with their lives. They often lack the ability to make legal challenges. When their lawyers don't inform them of those challenges, they have no options.
In the 50% of the cases where critical documents were missing, their lawyers fail to make the challenge. Worse still, in those and other cases where creditor filings are obviously deficient and outside the law, the court misses the error.
Wouldn't it be better if bankruptcy court operated like, let's say, an automobile manufacturer. Honda issued a recall on airbags for 2001 and 2002 models.
"Honda has expanded a previously announced recall of certain 2001
and 2002 model-year vehicles to replace the driver's airbag inflator in
an additional 378,758 vehicles in the U.S. " In total, Honda is aware
of 12 incidents related to this issue as of February 2010." Honda February 9, 2010
Based on 12 incidents brought to their attention, Honda recalled every vehicle suspected, nearly 400,000.
At least seven federal courts have cited Katherine Porter's study Her study included over 1,700 cases., half of which had a defective part - missing documentation required by law to justify the bankruptcy. Compare 850 instances of a defective part with no corrective action to the twelve instances referenced by Honda that generated a universal recall of models for two consecutive years.
Perhaps, the federal bankruptcy courts should emulate the judgment and practices of Honda.
The failure of bankruptcy courts to apply the law equally and the refusal to go back and correct every error in judgment demonstrate that we are clearly not a nation of laws. We are a nation in which the front room of the law serves the back room of The Money Party.
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