On December 6, 2006, the United States Senate held an "oversight" hearing to determine the effectiveness of the revisions to the Bankruptcy Code that took effect in October 2005. The speakers included Professor Todd Zywicki, of Gerge Mason University School of Law. Professor Zywicki was practically the only academic that supported the revisions to the Bankruptcy Code (over 104 professors opposed the law). Other speakers included Steve Bartlett, president of the Financial Services Roundtable and Clifford White III, acting director of the Executive Office of the United States Trustee's office. These speakers and others who represented banks and other corporate interests testified before the Senate that the new law was accomplishing its goals of reducing fraud, although the empirical data supporting their conclsions was thin, at best.
One of the speakers stated that 60 billion dollars were saved by a reduced number of bankruptcy cases being filed in 2006. Notwithstanding that the speaker offered no clear proof of that number, it is unclear who received the 60 billion dollar benefit - it is not likely to be consumers. Perhaps some corporate executives were able to buy more caviar for their holiday parties at their mansions.
The National Association of Consumer Bankruptcy Attorneys, (NACBA), described the hearings at a last ditch effort by the credit card industry to "slap some lipstick on the pig" of the failed changes to the Bankruptcy Code. NACBA President Henry Sommer said: "This Republican witness line-up is the financial world equivalent of the Flat Earth Society. Responsible banking industry people are just like the vast majority of scientists when it comes to global warming; they aren't going to try to con you into thinking that the verdict is still out and that black is white and up is down. We know from judicial opinions and surveys of credit counseling firms and bankruptcy attorneys that the bankruptcy law changes are not working".