Believe it or not, it has been 10 years since the Bankruptcy Abuse and Consumer Protection Act was passed in 2005. The law made it more difficult for people to file bankruptcy and added hurdles to the filing of a regular bankruptcy case. It added a component called the "means test" to a bankruptcy filing that uses a Debtor's past six months of income to determine whether they qualify for bankruptcy. A credit counseling requirement was added and other requirements and restrictions were imposed that made it more difficult for debtors and attorneys to prepare a bankruptcy petition. Some of the changes included:
- A mandatory credit counseling requirement
- Stricter eligibility for Chapter 7 filings
- Tax returns and proof of income required
- More people filing Chapter 13 instead of Chapter 7
- Fewer automatic stay protection for filers
- New priority for unpaid child support and alimony
- Mandatory financial management education
Despite a significant reduction in filings after BAPCPA, bankruptcy remains a viable option for many people who find themselves overwhelmed by debt. An experienced bankruptcy attorney can help you navigate the intricacies of the bankruptcy laws and help you decide if bankruptcy is a good option for you.
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