Filing for bankruptcy is an emotionally tough choice for any individual to make. Most people think that filing for bankruptcy will simply wipe out all of their debt. However, the new bankruptcy laws that were passed in 2005 make it very difficult to wipe out your debt and get a “fresh start”. The new laws favor the creditors greatly and in many cases force the debtor into unreasonable repayment plans.

The Pitfalls of Chapter 13

Chapter 13 Bankruptcy

Chapter 13 Bankruptcy

The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005 was one of the more significant legislative changes to personal finance passed by the United States Congress in recent history. It made sweeping changes to American bankruptcy laws, affecting both consumer and business bankruptcies. Many of the bill’s provisions were explicitly designed to make it “more difficult for people to file for bankruptcy

“. The BAPCPA was intended to make it more difficult for debtors to file a Chapter 7 Bankruptcy—under which most debts are forgiven—and instead required them to file a Chapter 13 Bankruptcy, under which their debts are discharged only after the debtor has repaid some portion of these debts.