BAPCPA (Bankruptcy Abuse Prevention and Consumer Protection Act)

The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), enacted in 2005, aimed to reform the U.S. bankruptcy system, making it harder for individuals to file for Chapter 7 bankruptcy, which wipes out most debts. It introduced a means test to determine eligibility for Chapter 7 and encouraged repayment plans under Chapter 13. The law also increased filing fees and mandated credit counseling before filing. Overall, BAPCPA was designed to reduce abuse of the bankruptcy system and protect consumers while ensuring that those who could repay debts would do so.