Discussion Paper

Banks and the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act

Abstract: Banks and credit card companies lobbied Congress for several years to amend the Bankruptcy Code because of an increasing number of bankruptcy filings1 and evidence that debtors were abusing the existing code. On April 20, 2005, President Bush signed the Bankruptcy Abuse Prevention and Consumer Protection Act into law. The act makes the most sweeping changes to the Bankruptcy Code since its enactment in 1978, amends the Truth in Lending Act (TILA), and directs the Board of Governors of the Federal Reserve System (the Board) to amend Regulation Z, the Board?s implementing regulation for TILA. The act?s provisions became effective on October 17, 2005, except for the changes to TILA and Regulation Z, which become effective 12 months after the Board publishes its final regulations. This article reviews the Bankruptcy Code changes that affect banks.

Bibliographic Information

Provider: Federal Reserve Bank of Philadelphia

Part of Series: Consumer Finance Institute discussion papers

Publication Date: 2005

Number: 05-19