Section 106 of P.L. 109-8, the Bankruptcy Abuse
Prevention and Consumer Protection Act of 2005 (BAPCPA), creates credit counseling
requirements for consumers seeking to file for bankruptcy under chapter 7 (governing the liquidation
of a debtor's assets) and chapter 13 (governing the financial reorganization of a debtor's assets). In
certain circumstances, these requirements may be waived. BAPCPA amends the U.S. Bankruptcy
Code, 11 U.S.C. ยง109, to require an individual to receive credit counseling before filing a petition
for bankruptcy. BAPCPA also amends the Bankruptcy Code to deny a discharge to chapter 7 and
chapter 13 debtors who fail to complete a personal financial management instructional course. Both
credit counseling agencies and personal financial management instructional course providers must
obtain approval from a U.S. trustee before offering a course to satisfy these requirements. Section
106 of BAPCPA also creates a new provision which specifies the approval requirements for both
credit counseling agencies and personal financial management instructional courses.