What is the Bankruptcy Reform Act?

The Bankruptcy Reform Act is a federal law that helps individuals and businesses find relief from overwhelming debt. The U.S. Bankruptcy Code was amended in 2005 to include the Bankruptcy Reform Act of 2005. The Bankruptcy Reform Act was designed to create more efficient and effective proceedings for both debtors and creditors, while making it more difficult for debtors to file for bankruptcy. The Bankruptcy Reform Act established new guidelines for the filing of bankruptcy, including more comprehensive credit counseling and financial education. It also placed restrictions on the use of debt relief programs and the amount of debt that can be discharged. Additionally, the Act requires debtors to make monthly payments to their creditors in exchange for a reduced balance due. The Bankruptcy Reform Act also included provisions to ensure that creditors get paid and that debtors have a fair chance of achieving a successful discharge. For example, it created protections for debtors from harassment by creditors and provided the means for debtors to pay their debts over time. In South Carolina, the Bankruptcy Reform Act applies to all bankruptcy cases. The Bankruptcy Court in South Carolina will review cases and decide whether or not to grant relief to the debtor. Cases are also subject to review by the State Bankruptcy Board for accuracy and fairness. The Bankruptcy Reform Act is designed to help individuals and businesses find debt relief and to reduce the number of bankruptcies filed in South Carolina.

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What is the Bankruptcy Reform Act?

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