Debunking the myth: Filing for bankruptcy is nearly impossible after 2005
In 2005, the congress passed some very stringent laws regarding bankruptcy. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) also known as the new bankruptcy law came with several changes in the American Bankruptcy code.
Essentially, debtors filing for either consumer or business bankruptcy under chapter 7 would have to go through a much stricter procedure and possibly even settle for filing for bankruptcy under chapter 13. In reality, while the BAPCPA introduced a few more hurdles for the debtor to cross, it’s only dishonest debtors against whom the act.
Statistically, the majority of the people filing for bankruptcy are honest debtors with genuine problems. Such honest debtors have filed for bankruptcy successfully, even after 2005.
The most prominent change that the 2005 act brought was an increase in the significance of the role of a good lawyer. Once you have an experienced attorney to guide you through the process, you can file for bankruptcy, the same way you could have, before 2005.