What is BAPCPA?

In 2005, the US government passed the Bankruptcy Abuse Prevention and Consumer Protection Act. This piece of legislation made it more difficult for parties to file Chapter 7 bankruptcy, which in turn has led to the increased filings of Chapter 13. While most people see this act as an obstacle for all bankruptcy filings, it was actually put in place to reduce the number of people who receive discharged debts under Chapter 7 and increase the number of individuals who must pay back at least part of the debts before discharge (under Chapter 13).

Revisions to US Bankruptcy Code

BAPCPA amended many areas of the United States Bankruptcy Code that was in place at the time of its passage. Some of the more significant changes are outlined below:

• The use of a “means test” to determine whether or not a bankruptcy candidate is eligible to file for Chapter 7
• The implementation of random and scheduled audits in order to ensure that Chapter 7 filer’s financial documents are true
• Requiring that an individual receive credit counseling before filing for bankruptcy
• Requiring that an individual receive financial education before his or her debts are discharged
• The implementation of new fees, including filing, attorney liability, increased debt repayment, and increased compliance requirement costs
• Changes in exemption rules and requirements

Along with adding the above conditions into the US bankruptcy code, BAPCPA also increased the responsibilities of the US Trustee Program so they can better enforce these new addendums.

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If you would like to learn more about the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, call an Austin bankruptcy lawyer of Slater, Kennon & Jameson, LLP today at 512-338-1100.