What is the Bankruptcy Abuse Prevention and Consumer Protection Act?

The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) is a law that was passed in 2005. It applies to individuals or businesses filing for bankruptcy in the state of Washington. BAPCPA is designed to protect consumers from being taken advantage of during the bankruptcy process. BAPCPA makes it more difficult for debtors to qualify for bankruptcy and to discharge their debts. It also requires debtors to complete a means test and credit counseling before they can file a bankruptcy petition. This means test helps determine if the debtor is eligible for Chapter 7 bankruptcy or if they must file for Chapter 13 bankruptcy. BAPCPA also makes the bankruptcy process more expensive for debtors. It requires them to pay court costs and legal fees, and it increases the amount of time it takes for a debt to be discharged. BAPCPA also includes provisions to protect debtors from creditors. It restricts creditors from filing claims that are duplicative or frivolous, and it restricts creditors from harassing debtors. In Washington, BAPCPA is enforced by the U.S. Bankruptcy Court located in Seattle. Debtors are required to go through the court to file a bankruptcy petition. If a debtor does not follow the BAPCPA rules, their petition may be dismissed.

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What is the Bankruptcy Abuse Prevention and Consumer Protection Act?

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