The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCA)
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, which opens a new era in the history of bankruptcy law and practice, was passed by Congress and signed into law by President Bush on April 20, 2005. The United States Trustee Program is the component of the Department of Justice that protects the integrity of the nation’s bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The Act gives the U.S. Trustee Program new responsibilities in a number of areas, including:
- Implementing the new “means test” to determine whether a debtor is eligible for Chapter 7 (liquidation) or must file under Chapter 13 (wage-earner repayment plan);
- Supervising random audits and targeted audits to determine whether a Chapter 7 debtor’s bankruptcy documents are accurate;
- Certifying entities to provide the credit counseling that an individual must receive before filing bankruptcy;
- Certifying entities to provide the financial education that an individual must receive before discharging debts; and
- Conducting enhanced oversight in small business Chapter 11 reorganization cases.