Bankruptcy Abuse Prevention Act

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, Pub. L. No. 109-8, 119 Stat. 23 (“BAPCPA”) became law on April 20, 2005 and substantially amended the Bankruptcy Code.

Among its many changes, BAPCPA enacted a “means test”, which was intended to make it more difficult to qualify for a Chapter 7 bankruptcy. If a person does not pass the means test and does not qualify for a Chapter 7 bankruptcy, the person may still file a Chapter 13 bankruptcy.

BAPCPA also requires individuals filing bankruptcy to take pre-filing credit counseling (usually lasting about an hour with an online service) and post-filing debtor education (usually lasting about two hours). The discharge of debts cannot take place unless both counseling courses have been completed.