Analysis Of The Bankruptcy Abuse Prevention And Consumer Protection Act Of 2005 (BAPCPA)

(BAPCPA) was signed into law on April 20, 2005. The new legislation is the largest overhaul of the bankruptcy system since its enactment in 1978. One main purpose of the new legislation is to prevent fraudulent bankruptcy filings as the new law makes filing chapter 7 bankruptcies more difficult. This analysis looks at the major amendments made to the bankruptcy system and the effects on the bankruptcy courts in the United States. A literature review was conducted and found that the new legislation is viewed as being creditor friendly. Many effects of the new legislation can be seen upon enactment of the bankruptcy reform act. However, it is too early to determine the effects of the new legislation on society as a whole until more research is conducted after the October 17, 2005 effective date of the act.