What Is BAPCPA?
In 2005, the federal government passed one of the most important changes to bankruptcy law in recent history. Known as the Bankruptcy Abuse Prevention and Consumer Protection Act, this piece of legislation established considerably stricter requirements for individuals filing for Chapter 7 bankruptcy. This law was aimed at reducing a perceived abuse of Chapter 7 opportunities. Many debtors who no longer qualify for Chapter 7 must now file for Chapter 13.
For more information regarding your bankruptcy options, contact the Boston bankruptcy lawyers of Joshua Spirn & Associates by calling 800-975-5346 today. Let our experienced and knowledgeable legal advisors help you through these challenging financial times.
BAPCPA Changes
The major difference between Chapter 7 and Chapter 13 bankruptcy involves the discharge of debts. Under Chapter 7, debtors can discharge significant portions of their debt at the cost of court foreclosures and repossession. Chapter 13 requires most debtors to work through a more comprehensive repayment plan, offering protection from creditors along the way. The following changes to bankruptcy cases were implemented because of BAPCPA:
- Mandatory credit counseling
- The means test, measuring average income against state levels
- Increased time between filings
- Limited exemptions
These rules make repeat bankruptcies and bankruptcies among high-income households particularly difficult.
Contact Us
If you are considering bankruptcy due to overwhelming debt, we can help you through the process. To learn more about our services and how we can assist you, contact the Boston bankruptcy lawyers of Joshua Spirn & Associates at 800-975-5346 today.
