Bankruptcy Is Federal Law

• The United States Constitution has granted Congress the power to enact bankruptcy laws. Bankruptcy is governed by Title 11 of the United States Code, which is the Bankruptcy Code. Bankruptcy law is federal law, which trumps state law. The Bankruptcy Code permits states to enact certain laws related to bankruptcy, but federal law alone determines who may file bankruptcy and when.
  
  

Bankruptcy Discharge

• A bankruptcy discharge eliminates your legal obligation to repay most of your debt. Your bankruptcy discharge can be an enormous relief if you are saddled with large debts and are unable to pay them. Such a program has great potential for abuse by unscrupulous consumers who may rack up debts, wipe them out in bankruptcy, and repeat this cycle without consequence. As a result, bankruptcy is carefully regulated by the federal government.
  
  

Congressional Efforts to Prevent Abuse of Bankruptcy

• On Oct.17, 2005, the Bankruptcy Abuse Prevention Consumer Protection Act went into effect. BAPCPA is a series of amendments to the Bankruptcy Code designed to protect consumers but also to prevent consumers from abusing the bankruptcy system. One of the many changes Congress made with BAPCPA was the time period allowed between Chapter 7 bankruptcy filings.
  
  

Chapter 7 Waiting Period

• Pursuant to Section 727 of the Bankruptcy Code, if you file a Chapter 7 case and receive a discharge, you must wait eight years from the date you filed your case before you can file another Chapter 7 case. Before BAPCPA, the time period was only six years, but Congress has extended it to eight years to stem the tide of repeat filers. If you filed Chapter 7 bankruptcy in Florida and you received a discharge, you must wait eight years from the date you filed your Florida bankruptcy before you can file another Chapter 7 in any state.