Monday, August 13, 2012
Friday, August 3, 2012
Let’s call a spade a spade. No matter how you look at it, the Bankruptcy Abuse Prevention and Consumer Protection Act, or BAPCPA, has been a spectacular failure. With an acronym like that, it’s no wonder. Passed in 2005, the law has not prevented bankruptcy abuse – and certainly has not protected consumers. BAPCPA was supposed to accomplish several goals in connection with consumer bankruptcies:
- It was supposed to reduce the number of people filing bankruptcy;
- It was supposed to force more people into Chapter 13 (repayment plan) rather than have them file a Chapter 7 (liquidation) bankruptcy; and
- It was supposed to provide for more payment to unsecured creditors.