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Bankruptcy Abuse Prevention and Consumer Protection Act
Bankruptcy Abuse Prevention and Consumer Protection Act
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005,
has radically changed Bankruptcy law and practice. It was passed
by Congress and signed into law by President Bush on April 20, 2005.
The United States Trustee Program is the component of the Department
of Justice that protects the integrity of the nation’s Bankruptcy
system by overseeing case administration and litigating to enforce
the Bankruptcy laws.
The Act gives the U.S. Trustee Program new responsibilities in a
number of areas, including:
- Creating a new “means test” that determines debtor eligibility
for Chapter 7 Bankruptcy or Chapter 13 Bankruptcy. repayment plan
- Supervising random audits and targeted audits to determine the
accuracy of Chapter 7 debtor’s Bankruptcy documents
- Certification of organizations that provide mandatory credit counseling
prior to filing Bankruptcy
- Certifying entities to provide mandatory financial education before
discharging debts
- Providing increased oversight in small business Chapter 11 reorganization
cases.
Recently, the U.S. Trustee Program’s civil and criminal enforcement
efforts have provided enhanced consumer protection and curtailed
instances of fraud and abuse. The Program’s Annual Report of Significant
Accomplishments explains many of its duties and activities.