Natural Disasters and the BAPCPA

by DeLadurantey Law Office, LLC on June 29, 2011

The most important benefit of bankruptcy for an individual is that it can remove most of his or her debt obligations. However, in 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act, or BAPCPA, was passed, significantly limiting individuals’ ability to have their debts forgiven through bankruptcy proceedings. In particular, those affected by natural disasters may find it difficult to obtain bankruptcy protection under the new law.

Natural Disaster Exemptions

While the BAPCPA has seriously limited the options for individuals whose bankruptcy was the result of a natural disaster, there are still certain exemptions available in these situations. These include:

  • Waiving the means test requirements for lost property
  • Not requiring credit counseling
  • Less restrictive documentation requirements
  • Facilitation of agreements between the debtor and their creditors

A natural disaster can exact a significant financial toll. However, with appropriate legal assistance, some of the worst effects can be diminished through bankruptcy.

If you or someone you know is considering filing for bankruptcy because of losses in a natural disaster, it is important to understand how BAPCPA may affect your application. Contact the Milwaukee bankruptcy attorneys of the DeLadurantey Law Office, LLC, at 414-377-0518 today to discuss your situation with an experienced legal professional and determine your options.


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