This paper explains that the Bankruptcy Abuse and Prevention and Consumer Protection Act of 2005 is
considered to be the
most extensive review of the Bankruptcy Code ever since its inception in 1978. The author points out that, although several
provisions, such as general structure of liquidation under chapter 7 and provisions for reorganization under chapter 11 remain as they are, the 2005 Act is
considered to have significant impact on the rights and interests of both creditors and debtors in consumer and business bankruptcy cases, which is reviewed in this paper chapter by chapter of the new code. The paper relates that the primary objective of this legislation, which was widely patronized by both banks and the credit card industry, is to discourage bankruptcy filings and to turn some debts not subject to a bankruptcy discharge.