President Signs Bankruptcy Reform Legislation

The President on April 20, 2005, signed the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. The effective date for the majority of the provisions is 180 days after signing, or October 17, 2005. Included in the tax title of the legislation are an number of provisions addressing various aspects of the treatment under the bankruptcy laws of tax obligations, claims and liens. Also addressed in the consumer protection title of the legislation is protection for tax-favored retirement and education funds.