All bankruptcies filed after October 17, 2005 are subject to the provisions of the BAPCPA.  While it is no longer a recent change, these bankruptcy laws are often referred to as the “new” bankruptcy laws. 

The primary aim of these revisions is to make it more difficult to file a chapter 7 bankruptcy and to encourage more filers to choose to file a chapter 13 bankruptcy instead. 

Prior to the passage of this act, debtors could choose to file either chapter 7 or chapter 13 bankruptcy, but once the BAPCPA was passed, debtors seeking to file chapter 7 bankruptcy were required to satisfy specific income and asset requirements. 

To determine if these criteria are met, the BAPCPA requires that the debtor’s monthly income be compared to the median income of the state in which they are filing for bankruptcy.  If the debtor’s income falls below the state’s average, they will automatically qualify to file for a chapter 7 bankruptcy.  If the debtor’s monthly income exceeds this average, a “means test” is applied. 

To further evaluate the debtor’s financial situation, their current monthly income is compared to a list of allowed expenses.  These expenses are based on IRS approved deductions.  These are not the debtor’s actual expenses, but rather averages that the IRS has determined. 

Georgia bankruptcy law has been impacted by the changes that were enacted with the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, as filing for bankruptcy is no longer a simple matter of completing a few forms, but instead requires complex formulas and exemptions. 

The best way to successfully navigate the additional requirements of the BAPCPA is by consulting a qualified Georgia bankruptcy attorney.