Our previous blog post discussed one of the apparent consequences of the 2005 change to the federal bankruptcy law, which made it more expensive to file in most cases. As we talked about on March 5, many people who could use bankruptcy protection to get out from under their debts cannot afford it, so they remain in debt.
In 2005, Congress passed a law that made big changes to federal bankruptcy law. The law, the Bankruptcy Abuse Prevention and Consumer Protection Act or BAPCPA, officially went into effect on Oct. 17 of that year. Now, nearly a decade later, it appears that the new law has been good for credit card companies, but a disaster for many families struggling with debt.