What I Hate Most About the New Bankruptcy Law

BAPCPA, the new Bankruptcy law, went into effect on October 17, 2005.  Happy birthday –it’s two years old today, and it continues to plague us with frustrating and cumbersome requirements.  (See Dana Wilkinson’s excellent comment on the Top Ten Wastes of Time After BAPCPA.)

What I hate most is that the law was written as if all consumer debtors and their attorneys are thieves; out to bilk the system.  The requirements of pre- filing credit counseling and having to prove the value of assets, to name two of many provisions, imply that a debtor would lie about values, assets or income if given the chance.

The requirement that a debtor read all of the disclosure documents imply that his or her attorney isn’t telling the whole truth as to the types of bankruptcy, the process involved, or the requirement of honesty. 

The requirements imposed on attorneys to verify assets and to properly educate and advise a debtor, imply that the attorney would lie or not adequately counsel a client in the first place.  And if all of these provisions aren’t enough, there is an audit system to randomly verify the accuracy of the documents.   

All in all, the new law simply shows that Congress doesn’t trust us – debtors or their attorneys.