CALL FOR A FREE
INITIAL CONSULTATION
813.254.5696

BRIDGING YOU TO A BRIGHTER FUTURE

What You Need to Know about the BAPCA

The BAPCA is the acronym for The Bankruptcy Abuse Prevention and Consumer Protection Act. It was passed into effect in 2005 and resulted in a number of changes to the existing bankruptcy laws. The law made it more difficult to file for bankruptcy, which was done in an attempt to prevent people from filing multiple times. The goal was to also protect consumers from predatory behavior related to bankruptcy.

Prior to 2005, there were consumers abusing the bankruptcy system. Chapter 7 filers would file multiple times, allowing them to run up debts with the intention of filing and wiping out those debts. Bankruptcy was able to be used as a tool to avoid paying debts, as opposed to a tool to get a fresh start. People were accumulating debt with the intention of filing, not filing because they found themselves in unexpected circumstances.

Changes that Resulted from the BAPCA

Obviously credit card companies were in favor of the new law because it limited the number of opportunities consumers had for discharging their debt.

As a result of the BAPCA, debtors filing for Chapter 7 bankruptcy:

  • Have to pass a means test
  • Complete credit counseling before filing and financial management before debts are discharged
  • Live in one location for a certain period of time before filing (requirements vary from state to state)
  • May not file more than one time in eight years for Chapter 7 or within six years for Chapter 13

Ultimately, the BAPCA helps limit opportunities for bankruptcy fraud, so unless you intended to commit fraud, you likely won’t experience that much of an effect from the law. As a matter of fact, the law has done little to reduce the number of bankruptcy cases filed each year, despite predictions from experts that it would.

Additionally, the law prevents people who shouldn’t be filing from doing so because they are pressured into the decision by a predatory bankruptcy “expert.” Bankruptcy can be a perfectly acceptable option for those who are struggling financially.

For more information about the BAPCA, check out this information from Investopedia.

Is Bankruptcy Right for You?

Both Chapter 7 and Chapter 13 can help you reset your situation and get a fresh start, but they aren’t the right option for everyone. A true bankruptcy expert will review your situation carefully and help you reach the best decision based on your circumstances. For some, this is absolutely bankruptcy, but for others, alternatives are the better option, at least temporarily.

One of the primary reasons debtors filing for bankruptcy must attend credit counseling is to help them make the best decision for them. Before filling, it’s important to understand your options and feel confident with whatever decision you make. If you ever feel as if you are being pressured into filing, it’s best to take a step back and evaluate your situation before moving forward.

If you’d like more information about the BAPCA or you would like to speak to someone about filing for bankruptcy, we can help. Contact the Law Offices of Robert M. Geller at 813.254.5696 to schedule a consultation.

Tampa Bankruptcy Law Blog

Top Three Bankruptcy Tips

Top Three Bankruptcy Tips

Filing for bankruptcy can be an overwhelming experience. Many people postpone filing to avoid the intimidation and anxiety they assume
Read More
Is there Such a Thing as Bankruptcy School?

Is there Such a Thing as Bankruptcy School?

If you’ve heard anyone talking about bankruptcy and what’s needed to successfully use it to remedy financial problems, you might
Read More
Three Important Things to Know about Bankruptcy and Taxes

Three Important Things to Know about Bankruptcy and Taxes

Bankruptcy offers relief when debts have gotten out of control. Chapter 7 bankruptcy results in a discharge of certain debts, which
Read More
What Happens When You are Sued for a Debt?

What Happens When You are Sued for a Debt?

If you’ve been served with a notice from a creditor that you’re being taken to court over a debt, you
Read More
Why Researching Bankruptcy Online Could Be a Mistake

Why Researching Bankruptcy Online Could Be a Mistake

In this day and age, the first place we turn for information is the internet. It’s convenient, free, and easy,
Read More
Why the Meeting of Creditors is the Scariest Part of Bankruptcy

Why the Meeting of Creditors is the Scariest Part of Bankruptcy

Filing for bankruptcy is a scary experience, but within the entire process from start to finish, the 341 Meeting of
Read More
How Do You Benefit from the Automatic Stay?

How Do You Benefit from the Automatic Stay?

Bankruptcy offers a variety of benefits. One of the most important is the automatic stay. Bankruptcy’s automatic stay stops bill collectors
Read More

The Secret Trick for Making the Most of Bankruptcy Exemptions

When you file for bankruptcy you take a risk. You’re risking that the choice you’re making now will improve your
Read More

Leftover Debt: What You Can Expect to Pay after Bankruptcy

Bankruptcy can free you from financial burdens that have plagued you for years. It can make your life easier and
Read More

Is Chapter 13 Bankruptcy the Best Option for You?

Deciding that bankruptcy is the right solution to help you with your financial struggles is a big commitment. Many people
Read More

Contact Us

Archive

Request a FREE Consultation

For The Next 5 Days Get A Free Book About Bankruptcy


 
comodo 10.0Robert Marc Geller
Robert Marc GellerClients’ ChoiceAward 2017 Robert Marc GellerReviewsout of 32 reviews LEA

We are A Debt Relief Agency.
We help people file for
bankruptcy under the Bankruptcy Code

Pay Online    

Office Locations

$Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405
Maps & Directions


Tampa Law Office Map

Satellite Office

$Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G

St. Petersburg, FL 33701
T: 727-532-3939
Maps & Directions


Map and Directions

At the Tampa Bay law firm, the Law Offices of Robert M. Geller, P.A., we help people with consumer bankruptcy matters in the Tampa Bay-St. Petersburg,  Florida communities such as Clearwater,     St. Petersburg, Tampa, Thonotosassa, Riverview, Lutz, Plant City, Brandon, Carrollwood, Wesley Chapel, St. Petersburg Beach, Lakeland, Mulberry, Dade City, Pinellas Park, Largo, Seminole, Odessa, Oldsmar and Lithia, and counties such as Hillsborough County, Pinellas County, Pasco County, Polk County and Manatee County.