Asked by Vanessa Loera Leija on May 27, 2024
Verified
The 2005 Bankruptcy Reform Act was significant because
A) it greatly decreased individual bankruptcy filings.
B) it greatly increased individual bankruptcy filings.
C) it made individual bankruptcy filings illegal.
D) it made it easier to make individual bankruptcy filings.
2005 Bankruptcy Reform Act
Legislation officially known as the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, designed to overhaul U.S. bankruptcy law by adding means testing to discourage Chapter 7 filings and to reduce bankruptcy fraud.
- Analyze the impact of legislative changes on bankruptcy filings and law.
Verified Answer
MG
Monie GordonMay 30, 2024
Final Answer :
A
Explanation :
The 2005 Bankruptcy Reform Act, officially known as the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), was significant because it implemented stricter rules for filing bankruptcy, which included means testing, mandatory credit counseling, and increased paperwork, making it more difficult and less attractive for individuals to file for bankruptcy. This led to a decrease in individual bankruptcy filings.
Learning Objectives
- Analyze the impact of legislative changes on bankruptcy filings and law.
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