Bankruptcy Abuse Prevention and Consumer Protection Act of 2005

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) aimed to reform the bankruptcy process in the United States. It introduced stricter eligibility requirements for filing Chapter 7 bankruptcy, requiring borrowers to pass a means test to prove they cannot repay debts. It also increased personal financial education requirements and limited the discharge of certain debts. Overall, the law was designed to prevent abuse of the bankruptcy system while protecting creditors and ensuring that only those truly in financial distress could easily eliminate their debts.