Is it more difficult to file a bankruptcy case because of some recent changes in the bankruptcy laws?
In April 2005, Congress overhauled the bankruptcy laws by implementing the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. This revision of bankruptcy laws became effective October 17, 2005. The new bankruptcy laws have an obvious intent to promote personal responsibility for debts. It is now more difficult and expensive to file a bankruptcy case. However, it is my opinion that people who really need to file a bankruptcy case may still do so.
The following are some of the most talked about features of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. There are numerous new provisions that are not covered here.
Before anyone can file a bankruptcy case, they must obtain a certificate of prebankruptcy credit counseling. This certificate must be obtained from an approved nonprofit credit counseling agency. A person considering filing a bankruptcy case will receive a briefing on opportunities for available credit counseling and will be assisted in performing an individual budget analysis.