October 17, 2013 is an important date for millions of bankruptcy filers.
The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) was a significant legislative action taken in 2005 to change the bankruptcy laws in America.
This reform made sweeping changes to the bankruptcy laws and made the act of filing bankruptcy tougher for consumers. It was aimed at protecting credit card companies, banks and other lending agencies who complained about too many bankruptcy cases being filed, abusing the system and leaving them holding the proverbial bag.
What does this means for consumers?
There was a change in that legislation that required debtors to wait eight years between filing a Chapter 7. Before the legislation debtors could file every seven years.
According to the American Bankruptcy Institute there were nearly 2.1 million bankruptcy cases filed in 2005 before the legislation took effect. That number fell to just over 600,000 the following year. By last year that number had climbed to 1.2 million. https://www.abiworld.org/AM/Template.cfm?Section=Annual_U_S_Filings1&Template=/TaggedPage/TaggedPageDisplay.cfm&TPLID=62&ContentID=36294.
It is expected that with the eight year anniversary of the BAPCPA of 2005, there will be a flood of filers who have waited out the Global Financial Crisis of 2008.
Consumers and businesses that have waited out the tough times have been subjected to collection activity, including legal actions and foreclosure. You can now turn to the bankruptcy professionals here at Collins Webster and Rouse. Norman Rouse will guide you through life’s financial challenges and can help you determine if filing bankruptcy will help your situation. We were here helping people prior to the law change in 2005 and have been here since, helping people navigate the new bankruptcy laws to provide financial relief.