Bankruptcy judge in Texas criticizes the recently enacted Bankruptcy Abuse Prevention

[bkfiler]

January 18, 2006: Bankruptcy judge in Texas criticizes the recently enacted Bankruptcy Abuse Prevention and Consumer Protection Act. (BAPCPA)

Debtors who did not seek credit counseling prior to filing for Chapter 13 relief, allegedly because they had been working with the mortgagee to determine the exact amount of the past due mortgage debt and had to file their petition quickly to save their home from foreclosure when the mortgagee at the last minute refused to accept payment from them, were ineligible for bankruptcy relief. In so holding, a bankruptcy judge in Texas roundly criticized the recently enacted Bankruptcy Abuse Prevention and Consumer Protection Act as being, among other things, a "grossly misnamed" act not motivated by any desire to protect consumers.

[bkfiler]

again, new case, new law - great stuff to learn.

i like the judge too. but notice how they got dismissed anyway.

[FoolAndHisMoney]

I know the whole credit counseling and financial management course should be removed for chapter 13 debtors. A chapter 13 is enough of a course by itself. I saw another judge comment on this too that these are a waste for 13filers.

[FoolAndHisMoney]

"In so holding, a bankruptcy judge in Texas roundly criticized the recently enacted Bankruptcy Abuse Prevention and Consumer Protection Act as being, among other things, a "grossly misnamed" act not motivated by any desire to protect consumers."



What my thoughts are in how the consumer is "protected" is that with all the new investigating the lawyers now have to do you may know ahead of time how things may work out. Before your lawyer just took your word on something such as transferring assets or making big purchases on credit. Now your lawyer investigates your last years bank statements, credit card statements, probably DMV records for 2 years to see what if anything your transferred and they will have a clear snapshot on your situation and advise you on this rather then just rely on what you tell them. If they see you did something suspicious like 9 months earlier they can advise you to wait. Before a nervous debtor would tell the lawyer their story, the lawyer bought it and filed and when an issue popped up that the debtor "forgot to mention" such as the loan payment to mother or a "forgotten asset" the debtor was screwed. I feel problems like this will happen less and less. Hope so anyway. If not then the "protection of consumers" is just a politically correct BS name for this law. We shall see.

[bkfiler]

foolandhispayout,

im not so sure it goes like that. we will see. bu twhat ive been told direclty by at least 2 attorneys and read on sites commeting on the new laws is that all they are going to do is make the client sign documents stating this that and the other thing. thtey say that will be good enough for them and they actually stated they do not feel, after reviewing the new law (and probably using whatever legal resource they have imo lol) that they would be held anymore accountable then they were before.

i would like to find out what new forms were created for clients to sign. that would help tell us.