The New (2005) Bankruptcy Law
In 2005, the credit card industry pushed for bankruptcy reform laws, which greatly changed the consumer bankruptcy law. In the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, stricter policies for filing for bankruptcy were implemented, including submitting to an income means test and a counseling requirement. This tests are aimed at forcing high income debtors to pay their debts over a period of three to five years, rather than discharge them in a Chapter 7 bankruptcy. The law for low and middle income debtors (below the median income in the particular state) has not changed much and remains the most generous in the world.
