Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA)
On April 20th, 2005, President George Bush signed the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 into law effective on October 17, 2005. The law, also known as the Bankruptcy Reform Act, amends Title 11 of the United States Code. The Act addresses many areas of bankruptcy including consumer filings, commercial bankruptcy, and Chapter 12 family farmer reorganization. The law establishes a "needs-based" formula that directs debtors to Chapter 7 or Chapter 13 based on their ability to repay creditors. Major provisions of the new bankruptcy law include:
Establishes means-testing for determining eligibility for chapter 7 bankruptcy relief.
Requires mandatory credit counseling for consumer debtors within 180 days of filing the petition. Debtors must also complete a personal financial management education course before they can obtain a discharge.
Establishes enhanced consumer protection and penalties for abusive creditor practices.
Discourages bankruptcy abuse and implements random audits of bankruptcy filings.
Increase chapter 7 and chapter 13 bankruptcy filing fees and change the budgetary treatment of such fees. Other provisions make various changes affecting the bankruptcy provisions for municipalities and the treatment of tax liabilities in bankruptcy cases.
Where can I get legal advice about my Bankruptcy issue or case?
If you have a Bankruptcy Law issue or case and want legal advice for your specific situation, call the law firm below to schedule an initial consultation.
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