Rich States, Poor States: The Disparate Impact of BAPCPA on High- and Low-Median Income State Residents

Abstract

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 established new tests for eligibility to file for bankruptcy under Chapter 7. One test is based on median income of the state in which the filer resides, which may result in unfair, arbitrary and Constitutionally impermissible discrimination against middle-income residents of poorer states.