The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 was an attempt to meet the complaints of the business community with regard to the _.

Question

Quizplus · Accepted Answer

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 was enacted in response to the perceived increase in the number of filings for personal bankruptcy. The act aimed to make it more difficult for individuals to file for Chapter 7 bankruptcy, which allows for the discharge of most types of unsecured debt. Instead, the act encouraged debtors to file for Chapter 13 bankruptcy, where they would have to repay a portion of their debts over a period of three to five years. The act was supported by the business community, which argued that excessive personal bankruptcy filings were driving up the costs of credit for everyone.