Does BAPCPA Stop Me From Filing Bankruptcy?

Does BAPCPA Stop Me From Filing Bankruptcy?

In the years leading up to 2005, the financial industry, including banks, credit card companies   and other lending institutions committed over one billion dollars to lobbies pressuring Congress to substantially revise the federal bankruptcy laws so that it would be more difficult for Americans to file consumer bankruptcy cases.

Prior to the enactment of BAPCPA in 2005, debtors were required to have more expenses than income each month to qualify to file a chapter 7 bankruptcy case. If they did not, they were required to file a Chapter 13 case. It wasn’t much more complicated than this and despite the fact the BAPCPA has altered these qualifications, it unequivocally does not prevent anyone from filing bankruptcy.

As a result of the financial industry throwing a lot of money at what they perceived to be a significant and growing problem, BAPCPA has only affected how prospective debtors qualify to file a bankruptcy case.

Fortunately, prospective debtors may still find relief as they did before the enactment of BAPCPA if they meet current requirements and guidelines. The attorneys at the Morrison Law Group have the experience to ensure that each client meets the requirements for filing a bankruptcy case in 2020.

BAPCPA’s primary purpose was to compel more Americans to file Chapter 13 cases rather than Chapter 7 cases. This was based on the logic that bankruptcy debtors would repay more of their unsecured (credit card) debt in a Chapter 13 case rather than none at all, as they would in a Chapter 7 case.

This was accomplished by the implementation of an analysis known as the “means test” to more strictly analyze whether a debtor has any disposable income to repay any general unsecured debt. If so, theoretically, the debtor must file a Chapter 13 bankruptcy case.

While BAPCPA was intended to have a substantial impact on Chapter 7 filings, a more recent trend indicates that consumer chapter 7 cases have increased greatly. Bankruptcy attorneys have become more learned and familiar with BAPCPA’s intricacies, and have learned how to help American consumers qualify to file chapter 7 cases. There is simply no reason to allow BAPCPA to dissuade anyone from filing bankruptcy in 2020.

The Morrison Law Group has helped 8,000 people file bankruptcy and gain a fresh start. We’ve helped over 20,000 Utah residents deal with all types of financial difficulties caused by various severe and tragic events. Talk to us today about your Chapter 7 or Chapter 13 bankruptcy options. Call 801.456.9933 to schedule a FREE consultation. We have locations in Ogden, Logan, Sandy, and St. George to serve the residents of the counties of Weber, Cache, Salt Lake, Utah, Morgan, Davis, Washington, and surrounding areas.

Does BAPCPA Stop Me From Filing Bankruptcy?

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Theron Morrison

Utah’s top bankruptcy and consumer protection attorney.