What is Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA)?
The new bankruptcy reform law, known as the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), went into effect on October 17. Among key provisions are the new requirements that, for the first time, consumers must participate in: • Credit Counseling, individually or in a group briefing, provided by an approved non-profit budget and credit counseling agency within 180 days prior to filing for bankruptcy. • Financial Education session (“pre-discharge debtor education”) in order to obtain a discharge from Chapter 7 or Chapter 13 bankruptcy. Other changes to the bankruptcy law from Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 include: • Means Test: If the debtor’s income is greater than the state median income, they may not be eligible for Chapter 7. • Homestead Exemption: A debtor may only exempt up to $125,000 of interest in a homestead that was acquired within the 1,215-day period prior to the filing although the calculation of that amount does
