In April of 2005, President George W. Bush signed into action the BAPCPA, a bankruptcy law that significantly reshaped the filing requirements for Chapter 7 bankruptcy. The Bankruptcy Abuse Prevention and Consumer Protection Act was intended to limit the range of debtors that can obtain Chapter 7 bankruptcy protection in order to reserve this opportunity for those in actual need. Individuals with considerable debts that do not qualify for Chapter 7 may still be eligible for Chapter 13.
If you are experiencing financial distress and are considering bankruptcy, it is highly recommended that you consult with a skilled and experienced attorney regarding the matter. Contact Florida bankruptcy lawyer Ryan J. Really, Attorney at Law, PLLC, by calling (239) 237-0675 to discuss your eligibility.
Chapter 7 and Chapter 13 bankruptcy have several important differences. When a person files for Chapter 13, they may be required to create a detailed payment plan for their outstanding debts. Individuals that file for Chapter 7 will be able to dismiss large portions of their debts in order to gain solid financial footing for the future. Some of the changes that BAPCPA has initiated include:
- The means test – compares the amount of income and the amount of debt according to a state-based scale
- Credit counseling
- Fewer exemptions
These changes are intended to prevent individuals from gaining bankruptcy protection when they may be fully capable of getting out of financial distress on their own. Unfortunately, the lines are often blurred and even someone who has a need for bankruptcy may struggle to file. This is one of many reasons that working with a knowledgeable attorney is critically important.
If you or someone you love is struggling with overwhelming debts, our Florida bankruptcy attorneys may be able to explain how BAPCPA will affect your options and what you can do to relieve the financial pressure. Contact the Law Office of Ryan J. Really, Attorney at Law, PLLC, at (239) 237-0675 for more information.