A Primer on Bankruptcy

Protections and Limitations of Chapters 7 and 13

B. Anthony Billings, PhD, and William H. Volz, JD

During each of the past several years, more than 1.5 million individuals filed for bankruptcy, as shown in the Exhibit. Since the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), American bankruptcy law has undergone substantial changes. This discussion provides a broad overview of the options available and describes the new “state of the law,” including the essential protections and limitations of Chapters 7 and 13 (Title 11 of the United States Code [USC]) and helpful illustrations of how the courts resolve issues under each of the bankruptcy options for individual debtors.