The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 has made some changes to the bankruptcy law. This law is known as the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. You do not need to memorize the name of this law; all you need to know is that this law makes the bankruptcy process more complicated, but the majority of those who qualified before will still qualify.
The bankruptcy means test is the most significant change to the process. The purpose of this test is to demonstrate that you cannot pay all your bills without filing bankruptcy. Those with a decent income can only file chapter 13 bankruptcy, which does not eliminate your debts but allows you to make new payment arrangements.
The purpose of this test is to ensure that only those who truly need financial assistance receive it. This new law also includes new credit counseling and money management classes, which is a great benefit because these classes will teach people how to properly build their credit and avoid future difficulties.
For bankruptcy eligibility, you must also file taxes and make them available to creditors if they request them.
The fact that Congress decided to make these changes to the bankruptcy law demonstrates that this is a significant issue that needs to be addressed. the new changes encourage individuals to double-check their status before deciding to file for bankruptcy and to consider alternative means of repaying debts and adjusting their finances." - https://www.affordablecebu.com/