Over the last few years Bankruptcy Law has undergone tremendous development. Merely few years ago the Bankruptcy Abuse Prevention and the Consumer Protection Act of 2005 were introduced in the Senate on February, 2005. The bill had been passed by the judiciary committee without written reports on February, 2005 by a vote of 12-5.
In the United States, bankruptcy is placed under Federal jurisdiction by the United States Constitution. The statutes are included within the Bankruptcy Code, located at Title 11 of the United States Code.
The Bankruptcy Abuse Prevention and the Consumer Protection Act of 2005 has incorporated the concept of Means Test. The means test is intended to give debtors the relief they actually need and identify those who have the ability to repay a part of their debts. The provisions relating to the means test in S. 256 establishes legal presumptions of abuse, adjustments to the means test criteria, and requirements for some debtors to reorganize under Chapter 13 rules. The bill also contains a "safe harbor" provision that may ease some harsh effect of the means test.