Bankruptcy Law Update
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), also known as the new bankruptcy laws, was signed into law a few years ago by former President George W. Bush. These BK laws were designed make it more difficult for consumers and businesses to file under Chapter 7 bankruptcy, under which most debts are forgiven (discharged), and instead be forced to file under Chapter 13. Under Chapter 13 bankruptcy, filers are put in a repayment plan rather than having many of their debts discharged. The new law increases the amount of paperwork involved in filing and raises the filing fees for debtors earning 150% of the federal poverty level or more. In addition, lawyers representing bankruptcy filers are now required to conduct an investigation of their clients’ filings and can be held personally liable for inaccuracies. These new bankruptcy laws are some of the reasons that debt settlement and consumer credit counseling filings have soared as well. Get more the more Debt Relief News online.
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