Credit Problems and Filing For Bankruptcy |

Florida Divorce by Attorney Mark A. Seff

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Meet Mark Seff

Florida Divorce handled by Attorney Mark A. Seff

12. I Understand The New Bankruptcy Law Makes It More Difficult For People With Credit Problems To File Bankruptcy?

In April 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA ) was signed. The underlined theory behind BAPCPA was that debtor’s who could pay their debts, or at least a portion of their debts, were abusing the system by eliminating all of their debts in a Chapter 7. BAPCPA set up a system to analyze the debtor’s income and expenses in a structured way to determine eligibility for Chapter 7. The overwhelming majority of debtor’s who could file Chapter 7 bankruptcy under prior law can still file Chapter 7.

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