What is the Bankruptcy Abuse Prevention and Consumer Protection Act? How does it affect me as an individual?
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (colloquially the BAPCPA) was intended to limit individuals ability to file bankruptcies under Chapter 7 of the US Bankruptcy Code, which allows total discharge of some indebtedness, and instead direct these individuals to file under Chapter 13 of the Bankruptcy Code. Chapter 13 is designed to have individuals restructure debt (pay off most debts under new terms) rather than discharge these debts.
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The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (colloquially the BAPCPA) was intended to limit individuals ability to file bankruptcies under Chapter 7 of the US Bankruptcy Code, which allows total discharge of some indebtedness, and instead direct these individuals to file under Chapter 13 of the Bankruptcy Code. Chapter 13 is designed to have individuals restructure debt (pay off most debts under new terms) rather than discharge these debts.
