Bankruptcy Reform Act

The Bankruptcy Reform Act refers to a significant overhaul of U.S. bankruptcy laws, primarily enacted in 2005. Its main purpose was to make it more challenging for individuals to discharge debts through bankruptcy. The Act introduced stricter means testing to determine eligibility for filing under Chapter 7, which allows for debt forgiveness. It also encouraged repayment plans under Chapter 13, aiming to balance the interests of creditors and debtors. Overall, the Reform aimed to reduce perceived abuse of the bankruptcy system while providing a structured way for individuals to manage their debts and rebuild their financial stability.