Reform The Current Bankruptcy Laws
- by: Vincent Troilo
- recipient: President Barack Obama
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) (enacted April 20, 2005), is a legislative act that made several significant changes to the United States Bankruptcy Code. Referred to colloquially as the "New Bankruptcy Law", the Act of Congress attempts to, among other things, make it more difficult for some consumers to file bankruptcy under Chapter 7.
It was passed by the 109th United States Congress on April 14, 2005 and signed into law by President George W. Bush on April 20, 2005. Most provisions of the act apply to cases filed on or after October 17, 2005.
Bankruptcy Court Filing Fees
As of August 2013, filing bankruptcy costs:
- $306 to file for Chapter 7 bankruptcy
The new law increases the amount of paperwork involved in filing and raises the filing fees.
Many other obstacles the bill creates for individuals seeking bankruptcy protection.
These included more detailed reporting requirements, higher fees, mandated credit counseling, and the additional liability placed on bankruptcy attorneys, which critics argued would drive up attorneys' fees and decrease the number of lawyers willing to help consumers file. These criticisms have been borne out in the months following the new law, as lawyers have reported that the bankruptcy process has become significantly more arduous, forcing them to charge higher fees and take fewer clients.
Dear President Barak Obama,
I am writing this letter after filing a petition on behalf of many people people that have been affected by the down turn in the American economy. Many of us have lost our jobs, our homes, and our confidence in the US Government to supply us with help. I am especially frustrated with the process of filing bankruptcy. I understand that the laws were enacted in 2005, 3 years before the American economy almost crumbled, and that the goal was to avoid bankruptcy fraud. But, Mr. President, 9 years have passed. I believe that most Americans would, if they could, repay their credtors, if given the means to do so. However, if they cannot, bankruptcy is an embarrassing, painful but valid solution. Yet, for the average American, the process is not only cumbersome, but the very thought of charging bankrupt people court fees, credit counseling fees, and almost forcing to hire attorneys they cannot afford, is tantamount to a modern day debtor's prison. I emplore you, sir, to review, with congress, the current laws. Any help you can give would be appreciated by many Americans looking to start a new life, without the harrassment from creditors and the ability to contribute to American society.
Thank you for your time,
Vincent Troilo
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