What is the “New Bankruptcy Law” which took effect October 17, 2005?
On October 17, 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 took effect, making it more difficult for consumers to file bankruptcy. In addition to increasing the amount of information to be compiled and the number of documents to be provided to the trustee and/or filed with the Court, BAPCPA imposes on debtors a pre-filing credit counsel briefing and a post-filing debt management course. The major substantive change contained in BAPCPA is the imposition of a median/means test on those seeking Chapter 7 Bankruptcy protection. If a debtor’s current monthly income does not exceed the state median, the means test does not apply. Because wage and salary rates in the Chippewa Valley and Western Wisconsin are relatively low compared to the statewide rates (including, e.g., Milwaukee and Madison) it is expected that a large number of Western District filers’ incomes will not exceed the state median, and the means test will not apply. If a debtor’s current monthly i
