What is the Bankruptcy Reform Act?

The Bankruptcy Reform Act is a federal law that governs how bankruptcies are handled in North Carolina. The Bankruptcy Reform Act was enacted in 2005 in order to give debtors a second chance while ensuring that creditors get a fair repayment for their losses. The Bankruptcy Reform Act also helps to reduce the amount of fraud and abuse in the bankruptcy system. The Bankruptcy Reform Act includes provisions that affect the filing of bankruptcy cases as well as how they are handled once the bankruptcy is filed. Specifically, the Bankruptcy Reform Act requires debtors to receive credit counseling prior to filing for bankruptcy. This helps to ensure that debtors are properly informed of the consequences of filing for bankruptcy and what they can do to manage their debts. Additionally, the Bankruptcy Reform Act also requires debtors to make an effort to pay back at least a portion of their debts when they file for bankruptcy. The Bankruptcy Reform Act also affects the rights of creditors. Specifically, the Bankruptcy Reform Act limits the type of debts that can be discharged during bankruptcy proceedings. Additionally, the Bankruptcy Reform Act requires creditors to receive advance written notification of a bankruptcy filing so that they can properly file their claim with the court. The Bankruptcy Reform Act is an important and necessary piece of law in North Carolina as it helps debtors escape the burden of debt while ensuring that creditors get paid back for their losses.

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What is the Bankruptcy Reform Act?

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