The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) amends the U.S. Bankruptcy Code by adding new responsibilities for debtors.
In general, the new law requires that debtors comply with their tax-filing responsibilities, make available previously filed tax returns, in many cases, and seek credit counseling services. Most BAPCPA provisions apply to cases filed on or after Oct. 17, 2005.
Contact a Bankruptcy Lawyer about debtor's responsibilty to find out all your legal options and rights.
Bankruptcy Common Terms:
- Debtor
- Creditor
- Bankruptcy Petition
- Tax Obligations
- Chapter 7
- Chapter 11
- Chapter 13
Tax Returns must be filed
Under the new law, if debtors fail to file a return that becomes due after the date of their bankruptcy petition, or fail to file an extension, the IRS may request the Court to order a conversion (change from Chapter 7 to Chapter 11 or from Chapter 11 to Chapter 13, for example) or dismissal of the case. Conversion or dismissal may also be ordered if a Chapter 11 debtor fails to timely pay tax obligations owed after the date of the bankruptcy petition. In order to have their plan confirmed, Chapter 13 debtors must also file all tax returns with the IRS for the four-year period before the bankruptcy petition. The debtor must establish filing by the first meeting of creditors.
Seven days before the first meeting of creditors, debtors must provide trustees a copy of their most recently filed federal tax return or a transcript of the return. Similarly, copies of amendments to such returns, and any past due returns filed while the case is pending, must also be filed with the court if requested. The returns or transcripts must be provided to the court at the same time they are filed with the IRS. If the returns or transcripts are not filed, a Chapter 7 discharge will not be granted, or a Chapter 11 or 13 plan will not be confirmed. In addition, debtors must also provide a copy of the tax return or transcript to requesting creditors.
Contact a Bankruptcy Lawyer about debtor's responsibilty to find out all your legal options and rights.
Means Testing for Chapter 13
Under the new law, individual debtors who meet certain income tests will be required to make regular payments on their debts under a Chapter 13 plan. The new law also authorizes the bankruptcy courts to modify IRS expense standards and use them to make this “means test.” Expense standards published on this Web site are used for tax-administration purposes only and may differ from those established by the bankruptcy courts. Inquiries about standards for means testing should be directed to the local office of the United States Trustee (Department of Justice).
Bankruptcy Law Is A Federal Law. This Sheet Gives You Some General Information About What Happens In A Bankruptcy Case. The Information Here Is Not Complete. You May Need Legal Advice.
TOP OF THE PAGE
|
Review Your Case With A Bankruptcy Lawyer Now
Get your bankruptcy legal questions answered. Contact our Bankruptcy lawyer in your area. You have legal rights. Protect & find out the laws for your assets and money.
|
Content Related to Topic
Find a Lawyer
|
