The Bankruptcy
Abuse Prevention and Consumer Protection Act of 2005,
which opens a new era in the history of bankruptcy law and
practice, was passed by Congress and signed into law by
President Bush on April 20, 2005. The United States Trustee
Program is the component of the Department of Justice that
protects the integrity of the nation’s bankruptcy
system by overseeing case administration and litigating
to enforce the bankruptcy laws. The Act gives the U.S. Trustee
Program new responsibilities in a number of areas, including:
• implementing the new “means test”
to determine whether a debtor is eligible for chapter
7 (liquidation) or must file under chapter 13 (wage-earner
repayment plan);
• supervising random audits and targeted audits
to determine whether a chapter 7 debtor’s bankruptcy
documents are accurate;
• certifying entities to provide the credit counseling
that an individual must receive before filing bankruptcy;
• certifying entities to provide the financial
education that an individual must receive before discharging
debts; and
• conducting enhanced oversight in small business
chapter 11 reorganization cases.
Over the past few years, the U.S. Trustee Program’s
civil and criminal enforcement efforts have strengthened
the integrity of the bankruptcy system by providing consumer
protection and combating fraud and abuse. The Program’s
Annual Report of Significant Accomplishments [PDF
- 3.3 MB] explains many of its duties and activities.
The additional tools provided under the Act will give the
Program further opportunities to improve the bankruptcy
system.
The U.S. Trustee Program has begun its planning and implementation
efforts in preparation for assuming its new responsibilities
on October 17, 2005, when most provisions of the Act take
effect. Working groups of employees from the Program’s
Executive Office and its regional and field offices are
assisting in the process. Please consult the Program’s
web site for updated information as implementation proceeds.
The U.S. Trustee Program welcomes this opportunity to
further enhance the integrity, effectiveness, and efficiency
of the nation’s bankruptcy system. The Bankruptcy
Abuse Prevention and Consumer Protection Act of 2005 represents
an important new development in the Program’s continuing
efforts to improve bankruptcy processes and procedures. |