BAPCPA protects consumers

The U.S. Trustee Program protects consumers by maintaining the integrity of the nation’s bankruptcy system.  Under this program, President Bush signed into law The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA).  The BAPCPA Act changedbankruptcy laws forever.  Because of its requirements, and potential for audit, it’s not recommended to file bankruptcy on your own.  Hiring an experienced bankruptcy attorney will alleviate your concerns, and save time, ensuring that your case is filed as accurately and as quickly as possible.

BAPCPA gave the U.S. Trustee Program new responsibilities, which are still in effect today.  Here are some examples:    

#1.  Implementing the new “means test.”  This test is designed to determine whether a debtor is eligible for chapter 7 (liquidation) or chapter 13 (wage-earner repayment plan).  By adding a “means test,” wealthy debtors were prevented from filing for Chapter 7 Bankruptcy.  If you fail the means test, a judge could still allow you to file for Chapter 7 bankruptcy if you are able to prove “special circumstances.”  For minimal cost, hire an attorney and ensure that you have all of the prerequisites covered.

#2.  Supervising random audits and targeted audits.  Bankruptcy law states that the U.S. Trustee’s office must audit at least 1 out of 250 cases in each federal judicial district.  At first glance, this may not seem like a large number of audits.  However, if your petition has any red flags, your case could be dismissed, revoked or even referred to the U.S. Attorney for criminal investigation.  Say for example, your income and expenses vary greatly from the majority of filers in your district.  This could be a red flag for the Trustee’s Office.  However, an experienced bankruptcy attorney will be able to guide you through an audit to ensure the timely administration of your case.

#3.  Certifying entities to provide the credit counseling.  Credit counseling and financial education certificates must be provided before filing bankruptcy and discharging debts.  According to, The Federal Trade Commission: “Only course providers that have been approved by the U.S. Trustee Program may issue these certificates. To protect against fraud, the certificates are numbered, and produced through a central automated system.”  An experienced bankruptcy attorney will guide you through the bankruptcy process, and ensure that all of BAPCPA program requirements have been met.

For a free initial consultation, call us today.  888-222-5615.