CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

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.

Archive

Tampa Bankruptcy Law Blog

How Does Claiming Bankruptcy in Florida Affect Your Children?

Claiming Bankruptcy in Florida Understanding how claiming bankruptcy in Florida affects your children is an important part of determining whether...
Read More

Claiming Bankruptcy in Florida: What Happens When You File for Bankruptcy and Your Spouse Does Not?

Claiming Bankruptcy in Florida You already know how much the things you do affect your spouse when you are married....
Read More

Should You Pay Back What You Owe Loved Ones Before You File for Bankruptcy?

Florida Bankruptcy Laws It’s common for people who are struggling financially to turn to their friends and family for help....
Read More

Bankruptcy and Family Law: Does Filing Affect the Child Support I Pay or Receive?

Bankruptcy and Family Law If you’re like many people, the well-being of your children is your most important priority. Struggling...
Read More

5 Tips for Overcoming the Emotional Toll of Bankruptcy

Florida Bankruptcy Attorney Getting through the bankruptcy process is about more than just improving your finances. Working with a Florida...
Read More

Bankruptcy and Divorce: The Far-from-Perfect Storm

Bankruptcy and Family Law Bankruptcy and divorce separately are two of the most stressful events you can experience in your...
Read More

Does the Pandemic Have You in a Holding Pattern? Here’s How to Know When to File for COVID Bankruptcy

COVID Bankruptcy If you’re struggling to make ends meet and you feel as if your life is on hold because...
Read More

Will Your Favorite Retailer File for Business Bankruptcy in 2021?

Business Bankruptcy 2020 was a tumultuous year and many of the financial challenges caused by the pandemic are expected to...
Read More

Boosted and Extended Benefits Keeping Unemployed Afloat – But For How Long?

Unemployment Benefits Were you one of the millions of people who ended up out of a job and using unemployment...
Read More

Should Bankruptcy Laws Be Adjusted Because of COVID-19?

Bankruptcy Laws The COVID-19 pandemic brought a lot of changes throughout 2020 and many are expected to continue into 2021...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

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

Pay Online Bankruptcy Courses Newsletter Subscription

NACBA Logo avvo1 avvo2 avvo3 LEA BBB Logo RG Seal

Call For A Free Initial Consultation

813.254.5696

Tampa Office

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

Map And Directions

St. Petersburg 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

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions