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11000-11001 General Overview

11000. BACKGROUND
The Bankruptcy Abuse and Consumer Protection Act of 2005 (P. L. 109-8) was the first major revision of the bankruptcy laws since the Bankruptcy Reform Act of 1978 (P. L. 95-598). The result is a completely overhauled Title 11 of the U.S. Code.

The intent of Congress in making these changes to the Bankruptcy Code was to improve the law in a way that would restore personal responsibility. The majority of the changes made to the Bankruptcy Code impact consumer bankruptcy, but some Code changes affect corporations, farmers, and small businesses.

The Act also made vast and dramatic changes in the substantive bankruptcy laws. These changes include:

1) Means Testing;

2) Expanded Debtor Duties;

3) Priority Child Support;

4) Military Accommodations;

5) Automatic Stay Exceptions Expanded;

6) Credit Counseling;

7) Exemption Law Changes;

8) Nondischargeable Debts Expanded.

11001. AREAS AFFECTING UNSECURED TAX COLLECTION
The five general areas of the Bankruptcy Abuse and Consumer Protection Act of 2005 (P.L. 109-8) that affect the collection of unsecured taxes are:

1) The automatic stay provisions of filing a petition in bankruptcy;

2) Pre-petition claims for eighth-priority treatment;

3) Post-petition administrative expense claims as second priority;

4) Claims as a general unsecured creditor; and,

5) Collection of certain unsecured property taxes after an individual is discharged from bankruptcy.