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What do the October, 2005 changes to the Bankruptcy Law mean to me?

As you may know, the nation’s bankruptcy laws changed dramatically in October, 2005 with the enactment of the Bankruptcy Abuse and Consumer Protection Act (BAPCPA) of 2005.  This new law was the result of over ten years and many millions of dollars of lobbying by the banking and credit card industry.  Needless to say there is very little in the way of “consumer protection” in this law!

The purpose and intent of the BAPCPA laws was to make Chapter 7 more difficult to file and to push Chapter 13 debtors into 5 year repayment plans.   After studying this new law thoroughly for over three years and after filing well over 10,000 cases under the BAPCPA bankruptcy laws, our experience has been as follows:

  • bankruptcy protection is still available, but the bankruptcy filing process is more complicated and paper intensive
  • if your income is modest and below the median income for Tennessee (i.e. less than $62,226 annually for a family of four), many of the provisions of the BAPCPA law will not apply to you
  • if your income is over the median income figure, Chapter 13 will still be available to you
  • the bankruptcy schedules we file will require backup documentation - the sooner you contact our office to get started, the faster we can get your case filed
  • you will need a great deal of documentation, so start saving pay stubs, receipts, tax returns and other financial documents
  • while we can handle emergencies, you are better off not waiting until the last minute

Clark & Washington, Attorneys, 237 French Landing, Nashville, TN 37228.
Phone: 615-831-7003



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