BAPCPA is an acronym for the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. The measure was passed by the Senate on 3/10/2005 and by the House of Representatives on 4/14/2005. President Bush signed the measure on 4/20/2005 with a general effective date of 180 days after the bill was signed. Thus, the BAPCPA applies to all cases filed on or after 10/17/2005. The BAPCPA made substantial changes to current bankruptcy law. For more information regarding cases filed on or after 10/17/2005, refer to Bankruptcy Basics, a document provided by the Administrative Office of the U.S. Courts.

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What were the major changes enacted by the new law?

The changes enacted by the BAPCPA are too numerous to list here in their entirety. Some of the major changes are:

For a complete list of the Interim Rules and Forms, click here.

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I filed bankruptcy before. When can I file again? Was the required time period between filings changed by the BAPCPA?

The most common question we receive is regarding the time period of eligibility between Chapter 7 filings. The BAPCPA increased the required time period between Chapter 7 filings from six years to eight years. This means that you are not eligible for a discharge in a Chapter 7 case if you filed and received a discharge in a previous case filed within the last eight years.

The BAPCPA also implemented other changes for eligibility, e.g., the eligibility for Chapter 7 and Chapter 13 after the filing of a case under another chapter. For more information regarding eligibility, refer to Bankruptcy Basics, a document provided by the Administrative Office of the U.S. Courts.

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Are all reaffirmation agreements filed on or after 10/17/2005 set for hearing?

All reaffirmation agreements are not set for hearing, although the BAPCPA does require additional review of reaffirmation agreements and in some cases, a hearing for approval of the agreement that would not have been required for pre-BAPCPA cases.

All reaffirmation agreements that are not signed by debtor’s counsel (meaning that debtor was acting "pro se" in the negotiation of the reaffirmation agreement) require Court approval. If you file a reaffirmation agreement that has not been signed by counsel for the debtor, a hearing will be set.

Also, if the reaffirmation agreement has been signed by the attorney for the debtor, but the attorney indicates that a presumption of undue hardship arises (meaning that it appears that debtor may not have the income to pay under the terms of the agreement, a hearing will be set on the reaffirmation agreement. This does not apply to agreements in which the creditor is a credit union, as credit unions are exempt from the presumption of undue hardship standard per U.S.C. §524 (m)(2).

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Can I get the median income figures required for the Statement of Current Monthly Income directly from the Clerk’s Office?

Although Official Forms 22A and 22C indicate that the data regarding median income figures can be obtained from the Clerk’s Office, the Clerk’s Office does not keep those numbers on file. If you contact us to obtain the numbers, we will refer you to the U.S. Trustee’s web page regarding Census Bureau Median Family Income By Family Size .

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Do I file my payment advices with the Court?

No. Payment advices are to be submitted directly to the trustee or to any creditor who requests copies.  

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I received a notice that my case is being audited. What does that mean?

Beginning with cases filed on or after 10/20/2006, Chapter 7 and Chapter 13 cases will be randomly selected for audit. These audits will be focused on determining the accuracy, veracity and completeness of the petition, schedules and other information provided by the debtor.

If you are a debtor and receive notice that your case is being audited, you and/or your attorney will be asked to provide additional documents as needed. After receiving and reviewing all documents, the auditor will file a report with the Court.

For more information regarding debtor audits, please refer to the U.S. Trustee’s Debtor Audits Information Page.

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How long do I have to file my credit counseling certificate?

When at all possible, the credit counseling certificate, a motion for extension of time to complete credit counseling or a motion for exemption from credit counseling should be filed at the time the case is filed. If one of these documents is not filed when the case is filed, the Court will enter a Notice of Deficiency allowing fourteen (14) days from the date the bankruptcy petition was filed to file the credit counseling documents. Upon failure to comply with the notice, the case may be dismissed without further notice or hearing. If additional time is needed, the appropriate motion and proposed order must be filed with the Court. The Court cannot extend deadlines based on a phone call to the Clerk’s Office.

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Where can I get credit counseling and financial management training?

You must obtain credit counseling and financial management training from an approved agency or provider. Please note that an agency may be approved to provide credit counseling in Kentucky but not financial management training (and vice versa).

Click on the links below to obtain a list of approved providers:

Credit Counseling Agencies Approved in Kentucky
Financial Management Training Providers Approved in Kentucky

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How much does it cost to get credit counseling or financial management training?

Agencies providing credit counseling and financial management training are permitted to charge "a reasonable fee," but no specific dollar amount has been set. The amount charged varies from provider to provider, but the average for credit counseling appears to be about fifty dollars. Financial management training is a longer course and may be slightly more expensive. Credit counseling providers must provide counseling for free to those individuals who do not have the ability to pay; requests for waivers of the fee are handled on a case-by-case basis by each provider.

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Does your Court require Official Form 23: Debtor’s Certification of Completion of Instructional Course Concerning Financial Management ?

No. The Western District of Kentucky requires only the certificate issued by the financial management training provider. You may file Official Form 23 with the Court, but it must be accompanied by the provider-issued certificate to satisfy the requirement for financial management training in your case.

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I received a notice that my case was closed without discharge for failure to file the Financial Management Course Certificate. What do I do to get a discharge now?

As directed in the notice sent to all parties and creditors at the time the case is closed without discharge, a motion to reopen with the full filing fee (currently $260.00 for a Chapter 7 and $235.00 for a Chapter 13) must be filed to reopen the case, at which time the Financial Management Course Certificate should also be filed. If the certificate is not available at the time the case is reopened, the Court will set a 30-day deadline in which to file the certificate or the case will be re-closed without discharge.