Bankruptcy Abuse Prevention and Consumer Protection Act of 2005
A San Jose bankruptcy attorney explains the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005
The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005 was enacted in April 2005 and applies to cases filed on or after October 17, 2005. It involved significant changes to the United States Bankruptcy Code with the goal to prevent abuse of the system and make it more difficult to file for bankruptcy, especially under Chapter 7. Among other requirements, under the law, consumers who plan to file for bankruptcy protection must obtain credit counseling from an approved organization within 180 days before filing. During the course of the bankruptcy process, they must complete a debtor education course in order to obtain a discharge.
Perhaps the most significant change enacted by BAPCPA was the restriction on the number of debtors that could file for Chapter 7 bankruptcy which subjects some debtors to a means test. Upon calculation of the debtor’s income and comparison to the median income of the state in which the debtor resides, debtors whose income is above the median income must pass a means test. Another important change enacted by BAPCPA was the allowance for dismissal or conversion of a Chapter 7 case upon a finding of abuse by an individual debtor with primarily consumer debt. Abuse may be found where there is an unrebutted presumption of abuse arising under the means test or through a finding of bad faith, based upon a determination of the totality of the circumstances.
If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs. Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.
