BAPCPA

BAPCPA, or the Bankruptcy Abuse Prevention and Consumer Protection Act, is a law passed in 2005 to make bankruptcy rules fairer and prevent abuse of the system. It set stricter eligibility requirements, increased mandatory credit counseling, and imposed tougher means testing to determine if individuals qualify for Chapter 7 or Chapter 13 bankruptcy. The law aims to balance debt relief for those genuinely in need while discouraging misuse of bankruptcy protections. Overall, BAPCPA updated bankruptcy laws to promote responsible borrowing and ensure the system serves those with genuine financial hardship.