Boca Raton Bankruptcy Lawyer

Bankruptcy Abuse Prevention and Consumer Protection Act of 2005

Bankruptcy can be a difficult situation to be involved in no matter who the person is. There are many things that you might be worried about when you are going through the bankruptcy process. When the trustee program looked at the overall bankruptcy program for the US, they decided that there were a few things that they needed to do in order to make the program more secure.

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) has helped to open new doors for the US trustees to help and protect the bankruptcy program in the US. When the act was written, they also began implementing what they called the means test. The point of this test was to decide whether a person was eligible for a Chapter 7 bankruptcy or if they would be required to only file a Chapter 13 repayment bankruptcy. So far, this test has been helpful in those situations where the trustees were not able to determine what type of bankruptcy the person should file for in their specific situation.

The act also implemented a new policy that stated that there were be random audits that were to be enforced to make sure that no one was committing any type of fraud with the bankruptcy system.

Over the past few years, this program has been working quite well to help keep the people from declaring bankruptcy in fraudulent ways. This program has proved to be helpful in the whole bankruptcy process for everyone that is filing.

For more information, contact the Boca Raton Bankruptcy Lawyers of Eric N. Klein and Associates, P.A. at 561-353-2800.