Bankruptcy Reform Act of 2005

The Bankruptcy Reform Act of 2005 made significant changes to U.S. bankruptcy laws. It aimed to reduce the number of individuals filing for bankruptcy by introducing stricter eligibility requirements, including a means test to determine if someone truly needs bankruptcy relief. Additionally, it emphasized debt repayment plans over complete debt discharge for individuals. The law also improved protections for creditors and required credit counseling before filing. Overall, the Act sought to balance the needs of debtors and creditors, making it harder for some to wipe out debts and encouraging responsible financial management.