Taking my cue from Cathy Moran’s blog article entitled, "C is for Counseling," where she wrote "Maybe my “C” word should have been “Congress” who created this travesty," I will discuss.

On a dark and stormy night on April 20, 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 was passed by Congress and enacted into law by then President Bush. Bankruptcy practitioners, courts throughout the nation and even the U.S. Supreme Court have been scratching their heads to interpret these changes ever since.  The changes are too numerous to list, but you can check out the FAQ page at the U.S. Courts website for key changes.

We all see BAPCPA as a boon to the creditors to make it more difficult for the consumer to even file for bankruptcy with the installation of the Means Test to qualify to file under Chapter 7 of the Bankruptcy Code. I see it as yet another strategic maneuver by the banks and Creditors to reduce losses and increase profits.

Consider that the banks knew that the housing bubble was likely to burst and that our economic growth was due to our nation’s proportional rising DEBT, the banks scrambled for a solution.  They decided to make it more difficult for consumers to file bankruptcy and so they created BAPCPA with its Means Test.  MBNA America Bank, N.A. was a major financial contributor to the Act and the top contributor to George W. Bush’s presidential campaign.  Does that answer your question as to whom Your Congress works for?

What the BANKS failed to consider in all this strategic planning was the increased unemployment rate, and underemployment rate that would take away many American incomes, allowing many more people to now pass the Means Test and qualify to file under Chapter 7 of the Bankruptcy Code. Kiss your government goodbye by getting your FRESH START today and kick debts to the curb for good.  Your financial freedom from debts will choke the banking system because We the People choose to pay ourselves by saving rather than spending our way out of this mess!

Check out other Blogs discussing Bankruptcy Alphabet and the letter "C"

Collection Agencies, Cramdown, Creditor’s Meeting

 Photo Credit:  Leo Reynolds