What is the National Bankruptcy Reform Act?

The National Bankruptcy Reform Act is a federal law that was enacted in 2005. This law makes changes to the existing bankruptcy laws and creates new protections for individuals and businesses. In Oklahoma, this act requires that certain individuals complete a credit counseling course before they can file for bankruptcy. It also requires that people who file for bankruptcy pass a "means test" to confirm that they truly need the debt relief that bankruptcy provides. The act also protects certain assets from being taken by creditors. For example, it creates bankruptcy exemptions that allow homeowners to keep property like their home that is valued up to certain limits. Additionally, it eliminates the ability for individuals to file for Chapter 7 bankruptcy if their income is too high. Overall, the National Bankruptcy Reform Act was created to ensure that only those who are truly in need of bankruptcy relief can file, and to provide additional safeguards that protect debtors from misusing the bankruptcy system. Furthermore, the act also provides additional protection for creditors so they can recoup some of the money that is owed to them. In Oklahoma, an individual considering filing for bankruptcy should seek the advice of a legal professional in order to ensure they abide by the rules and regulations set forth in the National Bankruptcy Reform Act.

Related FAQs

What is the International Banking Act?
What is the Right to Financial Privacy Act?
What is the Fair Debt Collection Practices Act?
What is the Fair Credit Billing Act?
What is the Unlawful Internet Gambling Enforcement Act?
What is the Bankruptcy Abuse Prevention and Consumer Protection Act?
What is the Fair Credit Reporting Act?
What is the Electronic Signatures in Global and National Commerce Act?
What is the National Bank Act?
What is the purpose of the Uniform Commercial Code?

What is the National Bankruptcy Reform Act?

Related FAQs

Related Blog Posts