I Heard that the Bankruptcy Laws Changed a Few Years Ago
Do I Need to Worry About Changes to the Bankruptcy Laws?
As you may have heard, the nation’s bankruptcy laws changed dramatically in October, 2005 with the enactment of the Bankruptcy Abuse and Consumer Protection Act (BAPCPA) of 2005. This new law was the result of over ten year’s and many millions of dollars of lobbying by the banking and credit card industry. Needless to say there is very little in the way of “consumer protection” in this law!
The purpose and intent of the BAPCPA laws was to make Chapter 7 more difficult to file and to push Chapter 13 debtors into 5 year repayment plans. After studying this new law thoroughly for over four years and after filing well several thousand cases under the current bankruptcy laws, our experience has been as follows:
- the changed law’s biggest impact has been on high income debtors.
- the new law does not affect most middle class families - bankruptcy is still readily available to you
- bankruptcy has become more paper-intensive - an organized, efficient law firm is truly a necessity
- some restrictions do apply to repeat filers - please let us know if you have ever filed before, whether in Knoxville or anyplace else in the country
- while we can still handle last minute bankruptcy emergencies, the best time to call Clark & Washington is as soon as you recognize that financial problems are looming