Enactment of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005
On April 20, 2005, President Bush signed into law the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 ("BAPCPA"). Several provisions of BAPACPA became effective with the President's signature. Most provisions will become effective on October 17, 2005.
BAPCPA is the most comprehensive revision of the Bankruptcy Code in a generation. It requires consumer debtors to obtain credit counseling before filing bankruptcy, make significant additional disclosures to their creditors, and satisfy a "means test" in order to obtain a Chapter 7 discharge. It limits the protection of the automatic stay, limits a debtor's ability to "cram down" vehicle loans and in many other ways, strengthens the hand of creditors in both consumer and commercial cases.
These are significant changes that will affect both creditors and debtors. For more information or to request a presentation regarding the new Bankruptcy Code provisions, please contact Spotts Fain attorneys, Robert H. Chappell, III (804) 697-2025 or Jennifer J. West (804) 697-2094.
