Can I still file under the new law?

The short answer is: YES, Most Likely You Can Still Get a Bankruptcy!

In 2005 The United States Congress passed the The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. This act is also called “BAPCPA” and “New Law”. Many people have the mistaken belief that they can no longer get a bankruptcy because of this law. This is not true.

If you could qualify before, you probably still qualify. Once in a while there is an unfortunate person who is prevented from filing by the insanity of this new law. However, it is more likely that you will qualify.

For most people, the impact of the new law was just to make bankruptcy more expensive, more administratively difficult, and add a few more steps. Because of the new test to see if you qualify for bankruptcy, you really should get a bankruptcy lawyer. A lot of lawyers who practiced bankruptcy before 2005 could not figure out the new law and they stopped practicing bankruptcy or only take the simplest cases. You really need to have a bankruptcy expert who is familiar with BAPCPA. All of our attorneys have to be expert in the new law. That is why if there is any way that you can qualify, our lawyers will see it.

Bankruptcy Expert David Waltzer’s Thoughts On What Happened in 2005
In 2005 The United States Congress passed the The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. Most people for many different reasons would say the Act was either an abomination of logic or at best a pretty big failure. George Bush was proud of it though. Go figure.

The stated goal of the act was to prevent abuse of bankruptcy. Rates of bankruptcy filings were increasing dramatically. Congress could have interpreted this increase in bankruptcy filings as an indication that:

  1. we must be heading for hard times as a nation
  2. creditors are so aggressive that they are driving good, honest people to bankruptcy
  3. if more people are filing bankruptcy, well; there must be a lot of fraud and abuse of the bankruptcy laws.

Guess which one they picked? Yup. Number 3. It was exceedingly dumb, or if you are more cynical, it was exceedingly corrupt.

Either way, the result was that the bankruptcy filings took a temporary hit while everyone figured out how to function under the new law, and soon after people started filing bankruptcy by the millions. The myth of the throngs of fraudulent abusive bankruptcy filers was soon exposed for the myth it was. It seems that the only thing the law did was cost hard-working Americans billions of dollars for no reason, and thoroughly demonstrate that most people filing bankruptcy are good honest debtors in need of government protection.