Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA)

The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), enacted in 2005, aims to reduce abuse of the bankruptcy system by encouraging responsible financial behavior. It introduces stricter eligibility requirements and mandatory credit counseling before filing, along with means testing to determine if a person qualifies for Chapter 7 or Chapter 13 bankruptcy. The law also emphasizes protecting creditors' rights and increasing transparency. Overall, BAPCPA seeks to balance providing debt relief to those in genuine need while discouraging unnecessary or dishonest filings, ensuring the bankruptcy process remains fair and sustainable for all parties involved.