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2005 Bankruptcy Legislation
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 contains the most significant changes to bankruptcy law in 25 years and amends nearly all major Bankruptcy Code provisions. It was signed into law by President Bush on April 20 and takes effect six months after signing. For consumers, the act makes it more difficult for people to have their debts discharged in a Chapter 7 bankruptcy. Under some circumstances, a person's only bankruptcy alternative is to file under Chapter 13, which requires a repayment plan over a period of years. Also, debtors have to pay for pre-bankruptcy credit counseling. On the business side, Wall Street investment bankers no longer are subject to conflict rules that prevent them from working for the same company before and after its bankruptcy. The act makes it more difficult for small businesses to reorganize under Chapter 11 and creates entirely new provisions for bankruptcy cases involving more than one country. It also allows creditors to close out their derivatives contracts with companies that have filed for bankruptcy, allowing certain financial transactions to be unraveled without bankruptcy court approval.
Legal News | News & The General Press | Hot Documents | Key Players
Legal News | News & The General Press | Hot Documents | Key Players
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