The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) is often called the “New Bankruptcy Law.” This Act became law in 2005 and, among other things, it has made it more difficult for some consumers to file Chapter 7 bankruptcy because it put in place something called the “Means Test.”

For example, Chapter 7 debtors must now provide a detailed income and expense statement when they file so that the Trustee and the Bankruptcy Court can sort out which people may not “qualify” for a Chapter 7 discharge under this new Means Test. But have no fear because your expert lawyer will help you. And even if you don’t qualify for Chapter 7, you may still use Chapter 13 to protect assets and to pay some “net available income” to creditors through a reorganization plan.