Filing for Personal Bankruptcy: Adoption of a “Bona Fide Effort” Test Under Chapter 13

Part I discusses the history and current application of the Chapter 13 wage earner relief provisions, focusing on the present “good faith” controversy. Part II analyzes the “bona fide effort” test and examines its current congressional status. Part III suggests that more specific statutory guidance is necessary in order to effectively apply the “bona fide effort” test and recommends specific guidelines for its use. The article concludes that by following such a set of standard guidelines when applying the “bona fide effort” test, bankruptcy courts would promote uniform treatment of debtors, enhance judicial economy, and facilitate appellate review of Chapter 13 cases.