Top 15 Lies About Bankruptcy-Lie #1: Congress Ended Bankruptcy in 2005

31 Jan Top 15 Lies About Bankruptcy-Lie #1: Congress Ended Bankruptcy in 2005

Top 15 Lies About Bankruptcy

Lie #1: Congress Ended Bankruptcy in 2005



Even though the 2005 amendments to the Bankruptcy Code known as “BAPCPA” were passed a long time ago, we are still hearing a lot of misinformation about this. Some of the worst falsehoods that bill collectors still are saying are:

  • The bankruptcy laws were repealed by Congress in 2005.
  • If you didn’t file for bankruptcy before October 17, 2005 (the day BAPCPA took effect), you are no longer allowed to file.
  • Only corporations can now file for bankruptcy.
  • You cannot discharge credit card bills under the new Bankruptcy laws.
  • You cannot discharge medical bills under the new Bankruptcy laws.
  • You can only keep one car or one truck if you file under the new Bankruptcy laws.
  • You will have to give up all of your vehicles if your file for bankruptcy.
  • The IRS will audit all of your prior tax returns if you file for bankruptcy.
  • You can only have one TV and one VCR if you file for bankruptcy and if you have a DVD it will be taken by the Trustee.
  • You can no longer stop a foreclosure by filing for bankruptcy.
  • If you file for bankruptcy, all of your bank records and tax records will be audited.
  • An FBI agent will come to the home of every debtor and will take photographs of everything.
  • Before you can file for bankruptcy, you must pass a written test. Likewise, you must pass another test to get out of bankruptcy.
  • Before you can complete your bankruptcy case, you must pass a lie detector test.
  • After you file for bankruptcy, you will never be entitled to another tax refund.


In fact, the truth is that you can do almost everything under the NEW law that you could do under the OLD law. It’s a bit more complex and requires more paperwork…but it’s your lawyer’s job to make sure that your involvement is is simple and pain-free as possible.

Speaking personally, we’re busier than ever. We’re still helping people get a fresh start when debt problems are just too much to handle.


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Brett Weiss, a senior partner at The Weiss Law Group, LLC, represents people and businesses in all phases of bankruptcy. He has experience in complex individual Chapter 7, Chapter 11, and Chapter 13 bankruptcy cases, and in Chapter 11 small business restructuring and reorganization. Mr. Weiss lectures nationally on bankruptcy issues. He has testified before the Federal Bankruptcy Rules Committee, the Consumer Financial Protection Bureau, and has twice testified before Congress on bankruptcy and credit issues. Brett Weiss is the co-author of Chapter 11 for Individual Debtors, and has written Not Dead Yet: Bankruptcy After BAPCPA, for the Maryland Bar Journal, as well as hundreds of blogs for the Bankruptcy Law Network. With his colleague, Daniel Press, he recorded a 13-hour basic bankruptcy training series, and leads intensive three-day Chapter 11 training boot camps. Mr. Weiss has received international media attention in connection with his work. He was interviewed by Barbara Walters on The View, has appeared on the Today Show, Good Morning America, ABC News with Peter Jennings, the Montel Williams Show, National Public Radio, AARP-TV, the BBC World Service, German state television, and numerous local radio and television programs, and been quoted in Money magazine, The Washington Post and The Baltimore Sun, among others. Brett Weiss is the previous Maryland State Chair for the National Association of Consumer Bankruptcy Attorneys, a founding member of the Bankruptcy Law Network, on the board of the Maryland State Bar Consumer Bankruptcy Council, and a member of the American Bankruptcy Institute and the Bankruptcy Bar Association of Maryland. He has received the Distinguished Service Award from the National Association of Consumer Bankruptcy Attorneys for his work on behalf of consumers across the country. Mr. Weiss is admitted to practice before Maryland and District of Columbia federal and state courts, the United States Courts of Appeals for the DC, Fourth and Eighth Circuits, the United States Tax Court, and the Supreme Court of the United States, and has been practicing law since 1983.
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