New Bankruptcy Law
 

New Bankruptcy Law 

The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005 took effect on October 17, 2005. This law made filing for personal bankruptcy more difficult, expensive and time consuming. Now an individual who wants to file for chapter 7 bankruptcy protection must have income less that the Median Income (or fail the Means Test), file a tax return for the year prior to the year of the bankruptcy filing (if they meet the threshold to file a tax return), take a credit counseling class within 180 days prior to the filing for bankruptcy, take an educational course concerning personal finacial management after meeting with the Trustee and meet other requirements.