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Bankruptcy Abuse and Consumer Protection Act

1. Research BAPCPA. What are some of the primary goals of the legislation? Name at least two ways this law revised bankruptcy proceedings. Do you think these changes are for the better? Why or why not?

2. Emilio Tangen obtained a life insurance policy from Kausch Insurance Co. on the life of Jerrell Harwin, naming himself as a beneficiary. Harwin did not live with Tangen, and Tangen did not inform Harwin of the policy. Tangen paid the premiums on the policy, and, upon death of Harwin, sued Kausch for the amount of the insurance. At trial, Tangen testified that Harwin was a distant uncle on his mother's side of the family. Based upon a discussion of relevant insurance law principles, should Tangen recover on this policy? Why or why not?

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1. The BAPCPA is the Bankruptcy Abuse and Consumer Protection Act. The primary goal of the legislation was to put more conditions around claiming bankruptcy, and this was mainly done because consumers were abusing the ability to file for bankruptcy and then have the bankruptcy quickly discharged after filing. The BAPCPA put more provisions on filing and now places more responsibility on the consumer. These changes are definitely for the better because it reduces the number of consumers that are able to abuse the court system by continually filing for bankruptcy when they have exceeded their means in debt. Under the BAPCPA, the debtor must make a percentage of repayment to ...

Solution Summary

1. Research BAPCPA. What are some of the primary goals of the legislation? Name at least two ways this law revised bankruptcy proceedings. Do you think these changes are for the better? Why or why not?

2. Emilio Tangen obtained a life insurance policy from Kausch Insurance Co. on the life of Jerrell Harwin, naming himself as a beneficiary. Harwin did not live with Tangen, and Tangen did not inform Harwin of the policy. Tangen paid the premiums on the policy, and, upon death of Harwin, sued Kausch for the amount of the insurance. At trial, Tangen testified that Harwin was a distant uncle on his mother's side of the family. Based upon a discussion of relevant insurance law principles, should Tangen recover on this policy? Why or why not?

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