On October 17, 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act slowed bankruptcy filings to a trickle. From January through October of 2005 there were over two million bankruptcies filed nationwide. Many people unwisely filed for fear that they would never be able to file again once the law went into effect. Word was out on the internet that you could not file bankruptcy or could not file bankruptcy on credit cards and all sorts of other bad information.
There is no question but that bankruptcy filings are down significantly from 2005. The high mark was the year 2010 when nationwide filings were almost 1.6 million. The projected filings for the year 2015 are 830,000. Many people can argue whether the bankruptcy reform legislation was good or bad for the country or good or bad for the economy. The fact is beyond dispute that bankruptcy reform made filing a major impact on debt relief.