Hurricanes Katrina and Rita and BAPCPA

Shortly after Hurricane Katrina hit the Louisiana and Mississippi Gulf Coasts in August of 2005 and Hurricane Rita hit the Gulf Coast of Louisiana, it was suggested by many that the citizens of the Gulf Coast region should not be subject to the provisions of BAPCPA.
With this push to exempt the Gulf Coast area and the confusion, rumors and misinformation associated with hurricane victims being scattered throughout the United States, it left many to believe that in fact they were exempt from BAPCA.
This is incorrect. BAPCPA does apply to those affected by Katrina and Rita.
However, some concessions have been made that provide much needed relief.
Among those concessions is the temporary waiver of the Credit Counseling and Debtor Education requirements of BAPCPA. Those people filing for bankruptcy in the in the Eastern, Middle, and Western Districts of Louisiana and the Southern District of Mississippi are exempt from these requirements.
The temporary waiver was extended as recently as September of 2006 by the U.S. Trustee’s Office.
Additionally, certain aspects of BAPCPA have been relaxed for those affected:

Trustees have been instructed that they should not file enforcement motions against debtors that cannot produce payment advices and income statements due to a natural disaster if the debtor otherwise qualifies for discharge.
Before filing and enforcement motion on the grounds of abuse, the trustee is to consider that income loss, increased expenses and “other adverse affects” of the natural disaster might be “Special Circumstances”.

Trustees are directed to make accommodations for debtors who cannot travel for the Meeting of Creditors and use other means of conducting the meeting such a having the debtor appear at the U.S. Trustee’s office were they relocated and conducting the meeting by telephone.

Venue objections are not to be brought or supported by the trustee if the debtor was displaced by a natural disaster.