BAPCPA and Natural Disasters
With hurricanes and industrial disasters affecting the Florida economy, the provisions of the Bankruptcy Abuse Prevention and Consumer Protection Act may seem overly restrictive to some individuals reasonably looking to file for bankruptcy. As mass disasters such as Hurricane Katrina have raised public awareness of the financial devastation and emotional toll that a natural disaster can wreak, bankruptcy law has remained mostly unchanged since the BAPCPA changes of 2005. However, the US Trustee’s office has issued a set of bankruptcy guidelines for these special circumstances.
To learn more about the details of the BAPCPA regulations currently in place, contact the West Palm Beach bankruptcy attorneys of Eric N. Klein & Associates, P.A. at 561-353-2800.
Trustee Amendments for Natural Disasters
When the unexpected destruction of a natural disaster puts an individual or family in a position of financial chaos, the US Trustee’s office has allowed certain exemptions to be applied to bankruptcy cases. These include the following:
- The means test can allow for certain lost properties and expenses to be waived
- The credit counseling requirement is waived
- A lack of debtor documentation as result of the disaster will not be punished
- Trustees may facilitate debtor-creditor meetings if communication is not readily available
While these modifications to BAPCPA’s normally strict regulations are generally followed by the courts, there are instances in which a judge may apply the original, pre-disaster standards. Working with an experienced attorney can help you navigate through the complex legalities of bankruptcy law when trustees and judges differ in opinions.
Contact Us
If your finances have been crippled by a natural disaster, you may be able to restore control over your life by filing for bankruptcy. Contact the West Palm Beach bankruptcy attorneys of Eric N. Klein & Associates, P.A. at 561-353-2800 for a free initial consultation.
