Daily Archives: October 6, 2013

Bankruptcy Abuse Prevention and Consumer Protection Act

October 17, 2013 marks the eight year anniversary of the passage and implementation of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA).    The law marked a dramatic change in how bankruptcies are filed.  As a result consumers seeking bankruptcy relief saw increases in the obstacles, barriers, and burdens in filing for bankruptcy which ultimately trickled down debtors’ attorneys who had no choice but to raise the costs of filing for bankruptcy.

Prior to the passage of the law, over 2 million bankruptcies were filed in 2005.  It was also the highest percentage of consumer filings in relation to total filings.  Bankruptcy filings have likewise seen a steady decline over the last two years, hitting the lowest numbers in fifteen years.

Many of those consumers who lined up in the days leading to October 17, 2005 to file under the new law have once again taken on debt and are struggling with creditor calls.  After the major filing spree, the economy took a major slide during the Great Recession of 2008.  Many consumers lost their jobs, homes, and took on a lot of debt in order to get by.  A long with job loss came the loss of health insurance which for some meant astronomical medical bills.

Many consumers do not realize what length of time that must pass before one can file for bankruptcy again.  The 2005 law states that eight years must pass between two Chapter 7 filings.  Only four years has to pass after a Chapter 7 filing before a Chapter 13 case can be filed.  Therefore, if you are one of those consumers who filed on the eve of the law change your once again eligible to file.  If you are one of those consumers who filed at the start of the economic collapse in 2008, but have since taken on new debt during this shaky recovery you too are also eligible for immediate relief under Chapter 13.

Here at One Day BK, our office has worked for many years under the new law and have developed relationships with the Bankruptcy Judge’s and Trustees.  Our office has an overwhelming experience in dealing with the changes under the new law to guide you through your case to a successful discharge and to get you the relief you need.