The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005  (BAPCPA) revised the bankruptcy code for filings after October 17, 2005.  The BAPCPA provisions were revised in order to steer away abusive filings, individuals filing for Chapter 7 bankruptcy and have the debts discharged rather than the Chapter 13 bankruptcy which makes them pay their debt and makes a payment plan.

The BAPCPA act puts a more stringent requirement to qualify for Chapter 7 bankruptcy by examining the individual’s ability to repay their debts. A “means test” was also created to determine whether a debtor filing for bankruptcy would be able to file for Chapter 7 or opt for Chapter 13. The means test essentially compares the debtor’s monthly income to the state’s median income and evaluates the debtor’s disposable income after allowance for secured debt and assumed monthly expenses.  Exceeding the median income and having too much money left over after accounting for living expenses won’t qualify an individual for Chapter 7 bankruptcy.
Call Firebaugh and Andrews today so they can go thru your options. 734-722-2999