The general effective date for the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 is October 17, 2005. Cases commenced under title 11 on or after that date will be subject to the amendments made by this Act. However, a number of provisions are effective on a date other than October 17, 2005. The sections referenced below are sections of the Bankruptcy Abuse Prevention and Consumer Protection Act, not sections of the current Bankruptcy Code.

The following amendments are effective April 20, 2005:

  • Amendment specifying that a certain percentage of all filing fees paid will be allocated to the US Trustee’s System Fund and a certain percentage will be allocated to a miscellaneous filing fee fund. This amendment sunsets April 20, 2007
  • Amendment increasing the number of bankruptcy judgeships by 27: section 1223

The following amendments apply to cases filed on or after April 20, 2005:

  • Amendments limiting the homestead exemption under certain circumstances and restricting discharge under chapter 12 when the limitations on the homestead exemption may apply: sections 308, 322 and 330
  • Amendment increasing the look-back period for wage priority to 180 days and increasing the maximum priority to $10,000: section 1401
  • Amendment expanding the look-back period for fraudulent transfers from 1 to 2 years and expanding the definition of fraudulent transfers to include certain transfers to insiders not in the ordinary course of business: section 1402.
    (Exception: Expansion of the look back period applies only to cases filed after April 20, 2006)
  • Amendment requiring reinstatement of retirement benefits if benefits were modified within 180 days of filing: section 1403
  • Amendment requiring appointment of trustee where reasonable grounds to suspect corporate officials engaged in fraud: section 1405

The following amendments apply to cases pending or commenced on or after April 20, 2005:

  • Amendment overruling Deprizio rule: section 1213
  • Amendment requiring that transfers made by nonprofit debtors comply with nonbankruptcy law: section 1221
  • Amendment requiring bona fide dispute as to liability or amount for involuntary cases: section 1234

The following amendments apply to cases filed after April 21, 2005:

  • Amendment expands the district court’s exclusive jurisdiction to include all of the debtors property wherever located and to include all matters related to the employment of bankruptcy professionals: section 324

The following amendment is effective July 1, 2005:

  • Reenactment of chapter 12: section 1001

The following amendment is retroactively effective to July 30, 2002:

  • Amendment restricting the discharge of debts related to securities fraud: section 1404

The following amendments are effective on an unspecified date:

  • Amendments to financial reporting requirements for small businesses are effective 60 days after the Advisory Committee on Bankruptcy prescribes reporting rules: section 434
  • Amendments to the Truth and Lending Act requiring enhanced disclosures under open ended credit plans, interest based credit card solicitations, late payment fees and deadlines and prohibiting certain finance charges are effective on the later of April 20, 2006 (or for section 1301, October 20, 2005) or 12 months from the publication of final regulations: sections 1301-1306

Written by Lee S.W. Cobb