Being a debt settlement attorney, I’m all too familiar with the downside associated with the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act. The one downside I see on a weekly basis is that a person now has to “qualify” to file Chapter 7. If you make too much money according to the means test, that fresh start is no longer an option. Our firm helps those who don’t qualify get out of debt.
https://money.cnn.com/2012/05/07/pf/bankruptcy-costs/index.htm
I guess that makes me an example of how the private sector takes over where the government decides to step back. But this article talks about another downside – one that I’m not confronted with – those that make so little money that the steep $1500 price tag for filing and attorney fees is completely out of reach. Once again, it seems that Congress was too busy listening to lobbyists instead of advocating for the needs of their constituents – those that actually need to file bankruptcy.