The Bankruptcy Abuse Provision and Consumer Protection Act of 2005, has resulted in a lot of talk lately, and seems to make bankruptcy more complicated. But it shouldn't, all this act does is make it harder for people to file Chapter 7. This also makes it more important to pick a good bankruptcy lawyer, so you can qualify for the best technique for you.

In general, to prevent people with high incomes, high debt (but low assets) from filing Chapter 7. This is determined by looking at the filer's income relative to the average household income. Also, there were some specific impacts of this act:

• Filers must get credit counseling
• Additional fees for those making over 150% of the federal poverty level
• More liability and cost for attorneys
• Less automatic protection
• Under Chapter 13, a larger percentage must be paid
• Increases the time between filing one bankruptcy and filing another

Additionally, the new act puts a limit on the amount of your house that is exempt from bankruptcy procedures.