A Review of the American Bankruptcy Act of 2005

The American Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 is the most significant revision made by the Congress in the past 30 years,and to some extent has realized the reform hope of American financial institutions such as banks in the past 10 years.Aimed at preventing bankruptcy abuse,the 2005 Bankruptcy Act puts up with ameans test as the eligibility requirement for bankruptcy applicants to file in Chapter 7.The revisions to automatic stay,exempt property and bankruptcy discharge also provide more protection for creditors' benefits.The 2005 Bankruptcy Act changes its attitude toward debtors to the full extent,enforces its function of quantificationally restraining bankruptcy abuse,and establishes a two-way function mechanism for American economy.