Key changes in the Bankruptcy Abuse Prevention Act 2005

Most of the provisions of the Bankruptcy Abuse Prevention and Consumer Protection Act (“BAPCPA”) apply to bankruptcy cases filed o­n or after October 17, 2005. BAPCPA provides for:

• A means test for chapter 7 eligibility based on the debtor’s income versus the state median income
• Mandatory credit counseling
• Mandatory debtor education
• New homestead exemption rules
• A new rule requiring consumers filing chapter 7 to wait eight years instead of six to file again
• Dismissal of petitions for failure to provide a certificate of credit counseling
• Increased reporting requirements for payments from employers for 60 days before the bankruptcy filing and a statement of monthly net income

A summary of major changes under the new bankruptcy law, written by American Bankruptcy Institute Executive Director Samuel Gerdano can be read at:

The American Bankruptcy Institute