The most heavily publicized provisions of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (the “Act”), signed into law on April 20, 2005, limited the availability of bankruptcy relief for debtors by establishing a means test that a debtor must pass before filing for Chapter 7 bankruptcy, also known as liquidation bankruptcy. Yet, there are significant provisions of the Act that focus on employee benefits and executive compensation. These changes, described below, are generally effective as of October 17, 2005.
