What is the National Bankruptcy Reform Act?

The National Bankruptcy Reform Act (NBRA) is a federal law that affects state banking law in Kansas and other states across the country. The NBRA was passed in 2005 and is designed to help individuals and businesses going through financial hardship. It provides a uniform set of procedures, guidelines, and restrictions to help debtors and creditors handle bankruptcy proceedings in a smoother and more efficient manner. Under the NBRA, creditors and debtors in Kansas are subject to a variety of rules, including eligibility requirements, notifications, restrictions on the types of debt they can file for, and the ability to voluntary enter into repayment plans with creditors. The act also sets limits on potential fees and set up standards designed to ensure an equitable distribution of assets. The NBRA also created the consumer credit counseling services, which are non-profit organizations that provide free and low-cost financial advice to individuals and businesses. This includes advice on restructuring debt, creating budgets, and setting up payment plans. Finally, the NBRA created a new chapter of bankruptcy law in Kansas. This chapter is known as Chapter 13 and is specifically designed for individuals who are unable to repay their debts but have to save their home from foreclosure. Under Chapter 13, individuals can enter into a three-to-five-year repayment plan with creditors which is overseen by a court-appointed trustee.

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What is the National Bankruptcy Reform Act?

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