What is the Bankruptcy Abuse Prevention and Consumer Protection Act?

The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) is a federal law passed in 2005 that was designed to reduce abusive practices by debtors filing for bankruptcy protection. This law was implemented in Tennessee as well as all other states. The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) established a “means test” which requires debtors to make a certain level of income over a certain amount of time before they can file for Chapter 7 bankruptcy. This is an attempt to ensure that debtors who have the means to pay back some or all of their debts do so instead of discharging all of them through filing for bankruptcy. The law also made it more difficult for debtors to discharge certain types of debts, such as student loan debt, back taxes, and child support payments. Additionally, BAPCPA changed the way creditors are handled in bankruptcy proceedings and allowed certain creditors to compete with one another for repayment. The Bankruptcy Abuse Prevention and Consumer Protection Act sought to reduce the number of bankruptcy cases being filed while protecting creditors and consumers. This law has been effective in making it more difficult to abuse the bankruptcy system by reducing the number of people filing in an effort to discharge debt they could otherwise pay.

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What is the Bankruptcy Abuse Prevention and Consumer Protection Act?

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