Around two years before the housing market crashed during the subprime crisis, Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) in 2005. BAPCPA, or sometimes informally referred to as the bankruptcy abuse reform act (BAR), was passed to limit the abuse of bankruptcy by implementing a means test to determine who could file, generally limiting the ability for non-secured debt to be discharged, like credit card debt not connected to assets like real estate.
Bankruptcy Changes Led to Subprime Crisis
Bankruptcy Changes Led to Subprime Crisis
Bankruptcy Changes Led to Subprime Crisis
Around two years before the housing market crashed during the subprime crisis, Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) in 2005. BAPCPA, or sometimes informally referred to as the bankruptcy abuse reform act (BAR), was passed to limit the abuse of bankruptcy by implementing a means test to determine who could file, generally limiting the ability for non-secured debt to be discharged, like credit card debt not connected to assets like real estate.