THE CURRENT BANKRUPTCY LAW

        On April 22, 2005, the president signed new bankruptcy legislation, which, for the most part, went into effect on October 17, 2005.  Your bankruptcy is now governed by these changes.  

        The changes are significant.  Two education requirements have been added as well as a means test.  The means test gauges your income against the state median income.  Generally, those above the state median income, plus certain adjustments, will be unable to file a chapter 7 bankruptcy and will have to file a chapter 13 bankruptcy, which has a repayment plan.  Several disclosure requirements have been added by Congress to the bankruptcy process. 

        The changes in the law will entail an increase in the attorneys' fees for chapter 7 and chapter 13 cases.

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