CCH Explains Bankruptcy Reform

It isn’t law quite yet, and there is serious question as to whether it deserves the description Reform, but if anyone can tell you what it’s about, CCH can do it.

CCH PRESS RELEASE

MAJOR BANKRUPTCY REFORM MEANS CHANGES FOR MANY PROFESSIONALS, CCH SAYS

RIVERWOODS, ILL., April 14, 2005) – The most sweeping overhaul of the Bankruptcy Code since its enactment in 1978 will bring big changes not only for debtors seeking protection, but also for a wide array of legal and business professionals, credit providers, credit counselors and others, according to CCH INCORPORATED (www.cch.com), a leading provider of business law information and publisher of the authoritative Bankruptcy Law Reporter.

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, cleared by Congress on April 14, is expected to be signed into law shortly by President Bush, with most provisions of the Act going into effect 180 days after enactment. To aid professionals affected by the new law, CCH offers a new book resource: Bankruptcy Abuse Prevention and Consumer Protection Act of 2005: Law and Explanation (approximately 400 pages, $57).

For additional special CCH coverage of the new bankruptcy law, including a CCH Tax Briefing on the taxation provisions of the Act, visit www.cch.com/bankruptcy. The site will also be updated in the coming days to include a Special CCH Briefing on the overall bill.

Via Josh Marshall’s Bankruptcy Bill Blog
, good place to go for some solid information about Bankruptcy Reform, from a leftward tinge, here’s a sortable listing of which members of the House voted Yea or Nay.

BANKRUPTCY ACT OVERVIEW

At the heart of the Act is the creation of a needs-based “means” test that requires an individual’s assets and income to be considered when deciding whether the applicant is abusing the system by seeking to obtain a “fresh start” through Chapter 7 liquidation, instead of repaying debts under a Chapter 13 repayment plan.

“Bankruptcy judges currently make that decision at their discretion, and debtors are not required to prove insolvency to wipe out most debts,” noted Sheila Williams, CCH banking law writer/analyst.

The Act contains special accommodations for active duty military personnel, low-income veterans and those with serious medical conditions. In addition, bankruptcy courts are given discretion to reduce unsecured consumer debts, typically credit card debts, by up to 20 percent if a creditor refuses to negotiate a reasonable alternative repayment schedule proposed by an approved credit-counseling agency. Domestic support obligations will be accorded first priority among unsecured debt. Additional protections also are provided for retirement funds and savings for postsecondary education.

Read the entire Press Release for more information about the Act.

And, of course, CCH has a book.

CCH OFFERS LAW AND EXPLANATION BOOK

To help professionals cope with the largest overhaul of the Bankruptcy Code since its enactment in 1978, CCH is offering Bankruptcy Abuse Prevention and Consumer Protection Act of 2005: Law & Explanation. It includes the full text of the legislation, a table of statutes added or amended by the Act, table of effective dates, invaluable CCH explanation of the provisions in the Act, selected committee reports and other legislative history. The 14 explanatory chapters provide detailed discussion of all of the changes to the Bankruptcy Code, including specialized treatment of the legislation’s tax provisions in a chapter authored by bankruptcy tax expert, Kenneth C. Weil.

For more information or to order the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005: Law & Explanation, call 800-248-3248 or visit the CCH Online Store at business.cch.com/onlinestore. Single copy price is $57; quantity discounts are available.