Bankruptcy Abuse Prevention and Consumer Protection Act

The Bankruptcy Abuse Prevention and Consumer Protection Act, enacted in 2005, aims to prevent individuals from abusing the bankruptcy system. It introduced stricter eligibility requirements for filing Chapter 7 bankruptcy, requiring debtors to undergo a means test to determine their ability to repay debts. The law also emphasized financial education by mandating credit counseling before filing and debtor education after. Ultimately, it seeks to ensure that bankruptcy serves as a genuine option for those in dire financial trouble while discouraging misuse of the system.