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Essay

The New Bankruptcy Laws

Essay specific features

 

Issue:

Business

 

Written by:

Louise H

 

Date added:

July 13, 2016

 

Level:

University

 

Grade:

A

 

No of pages / words:

8 / 2206

 

Was viewed:

8507 times

 

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Essay content:

The Act also creates new responsibilities for those charged with administering consumer bankruptcy and those who counsel debtors to achieve bankruptcy relief. One of the most important provisions in the BAPCPA is the amendment to Bankruptcy Code Section 707(b), which provides for "means testing." Prior to enactment of the BAPCPA, a case under chapter 7 could only be dismissed for "substantial abuse...
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According to the CCH Bankruptcy Reform Act Briefing, the "means test" is designed to "force those debtors who have the ability to pay some of their debts into Chapter 13 as opposed to liquidating under Chapter 7 and wiping the slate clean." Under the test, a debtor would remain eligible for Chapter 7 if his or her monthly net income is less than $100 ($6,000 over five years)...
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