Myth # 1 – Congress Eliminated Bankruptcy in October of 2005


Even though the 2005 amendments to the Bankruptcy Code known as Bankruptcy Abuse Protection Consumer Protection Act, BAPCA for short, 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  • The bankruptcy laws were repealed by Congress in 2005.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 the day before BAPCPA took effect, or by October 17, 2005,  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.

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