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Bankruptcy Abuse Prevention and Consumer Act Makes Chapter 7 Harder

After passing through the Senate with a vote of 74-25, the Bankruptcy Abuse Prevention and Consumer Act of 2005 passed the House 302-126. The final step in its journey is the White House where it will be signed into law shortly after.

The primary purpose of the bill is simple: those who try to file for Chapter 7 bankruptcy will now have a harder time doing so. This is to weed out those would-be filers who are searching for a way to avoid paying their debts. Essentially the bill states that your income must be below that of the state median income or else your filing will be dismissed. Instead, you will become eligible for Chapter 13 bankruptcy, the less appealing plan for many who are seeking bankruptcy protection.

In addition to forcing more people to file for Chapter 13 bankruptcy, the new bill will impact credit scoring models.

If you are considering bankruptcy as a solution to your financial problems, contact us now to discuss your options with a Chicago bankruptcy lawyer.

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The information on this website is for general information purposes only. Nothing on should be taken as legal advice for any individual case or situation.

Main Office: 123 W. Madison Street, Suite 205 Chicago, IL 60602
Phone Number: (312) 427-3100