New Bankruptcy Law Takes Effect

The new bankruptcy law effective date for amendments

When will the new bankruptcy law take effect?

On March 11, 2005, the U.S. Senate - 109th Congress, passed S. 256 known as the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. All Republican Senators, plus three Democrats voted in favor of passage. On April 14, 2005, the House of Representatives approved the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. All Republican block voted in favor of reform. Three Democrats also voted for reform. Upon approval, the bill became "Enrolled," and was then sent to the President. On April 20, 2005, President Bush signed the bill. Based upon the effective date provided in the bill - 180 days for most amendments - this Act will become effective October 17, 2005. Be aware, homestead limitations are immediately effective and discharge in pending cases delayed until compliance of new homestead value limitations can be verified.