Chapter 7 Bankruptcy Laws & Code

The Chapter 7 bankruptcy laws were first enacted in the United States in 1841. The Bankruptcy Code of 1841 first established voluntary bankruptcy. The purpose of Chapter 7 bankruptcy even in 1841 was to allow for clients to obtain a fresh financial start. The Chapter 7 Bankruptcy Code was amended in 1898 and codified as the Bankruptcy Act of 1898.

When the Chapter 7 bankruptcy laws were codified in the Chapter 7 Bankruptcy Code of 1898, this began the era of the debtor and creditor relationship. The Chapter 7 bankruptcy laws were again amended in 1938 and this codification of the Chapter 7 Bankruptcy Code was known as the Bankruptcy Act of 1938. The Chapter 7 bankruptcy laws were also known as the Chandler Act. When the Chapter 7 Bankruptcy Code was changed in 1938 the purpose was to make bankruptcy more popular to debtors.

In 1978 the laws were amended again and the Chapter 7 Bankruptcy Code was codified into the Bankruptcy Reform Act of 1978. The Bankruptcy Reform Act of 1978 made many changes to the Chapter 7 bankruptcy laws. The change of the Chapter 7 Bankruptcy Code, for example, contained four chapters or titles of Chapter 7 bankruptcy laws.

The Chapter 7 Bankruptcy Code was again amended in 1984 and when the laws were amended in 1984 this was based upon Justice Brennan’s opinion in a bankruptcy case. The codification of the Chapter 7 Bankruptcy Code was known as The Bankruptcy Amendments and Federal Judgeship Act of 1984.

In 1994 the Chapter 7 bankruptcy laws were once again codified in The Bankruptcy Reform Act of 1994. This codification of the Chapter 7 Bankruptcy Code applied to all Chapter 7 bankruptcy cases filed on or after October 22, 1994.

The current Chapter 7 Bankruptcy Code can be found in Title 11 of the United States Code. The Chapter 7 Bankruptcy Code section deals specifically with Chapter 7 bankruptcy.

The Chapter 7 Bankruptcy Code was revised significantly and became effective in October of 2005. The 2005 revision to the Chapter 7 bankruptcy laws was known as the Bankruptcy Abuse Prevention and Consumer Protection Act. The Bankruptcy Abuse Prevention And Consumer Protection Act significantly amended the Chapter 7 bankruptcy laws.

Chapter 7 bankruptcy eligibility was significantly altered under the revision to the Chapter 7 bankruptcy laws of 2005. In fact, the Chapter 7 Bankruptcy Code imposed several changes, one of which was to require the attorney in a Chapter 7 bankruptcy to obtain from a Chapter 7 bankruptcy client, the client’s income for the six months preceding the filing of the Chapter 7 bankruptcy case. Under the current Chapter 7 bankruptcy laws, if a client’s income exceeds median income for the six months preceding the filing of a Chapter bankruptcy case, the client is ineligible to file for Chapter 7 bankruptcy.

Another change to the Chapter 7 bankruptcy laws was the requirement that a client complete a consumer credit counseling course in order to be eligible to file a Chapter 7 bankruptcy.

All of the current Chapter 7 bankruptcy laws are contained in the Chapter 7 Bankruptcy Code as outlined below:

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Law Offices Of Roger Ghai, P.C.
We are a debt relief agency. We help people file for bankruptcy under the Bankruptcy Code.

Disclaimer: This website contains general information about various areas of bankruptcy. It is highly recommended that if you are considering bankruptcy as an option, that you seek the advice of an attorney. The information on this Website is not intended to be legal advice and viewers should consult with an attorney.