BAPCA
BAPCA is the acronym for the Bankruptcy Abuse Prevention and Consumer Prevention Act of 2005. Also known as “The New Bankruptcy Law,” it is a major overhaul of the bankruptcy system by Congress in an attempt to make it more difficult for consumers to erase debt by forcing more of them to file under Chapter 13 (reorganization) rather than Chapter 7 (liquidation). The overwhelming consensus among all bankruptcy practitioners, both debtor and creditor, is that BAPCA is poorly written and, in the final analysis, does not affect the vast majority of consumers’ ability to actually file Chapter 7 bankruptcy. It has, however, increased the work required by attorneys, trustees and court officials, so as a result, bankruptcy attorney fees and court costs are higher after BAPCA.