By Ed Flynn, ABI
The most prominent aspect of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) was the means test. Debtors who could not pass this two-prong test of income and allowable expenses are supposed to repay some or all of their debts in a chapter 13 plan. In the six-month period between the enactment and effective dates of BAPCPA, there was a great deal of media coverage that complained about how restrictive the means test would be. The available data indicates that this has largely turned out to be inaccurate. Read more.
