On April 20, 2005, the President approved S. 256, the “Bankruptcy Abuse
Prevention and Consumer Protection Act of 2005,” which had been passed by the
Senate on March 10, 2005 and by the House of Representatives on April 14,
2005, both by over whelming votes.
The bill will amend the Bankruptcy Code to create a “means test” for
debtors filing under Chapter 7, restrict “cramdowns” of vehicle loans in
Chapter 13, encourage reaffirmations of credit union debts, and restrict but
not eliminate different treatment of the homestead exemption in various
states. Most of these amendments took effect on October 17, 2005.
