Rumors abound that bankruptcy relief is unavailable, or that it is impossible to file because the requirements
are so harsh.
The rumors are false.

In October 2005 new bankruptcy laws went into effect.  The new laws have changed bankruptcy, but the fact of the matter is that the vast majority of consumers still qualify to file bankruptcy.

So what has changed? What follows is a brief explanation of a few of the most important changes:

• The Means Test: The means test is a calculation intended to steer consumers from Chapter 7 bankruptcy into Chapter 13 bankruptcy.  Median household income for the state is compared to a person's or a married couple's average income over the 6 months preceding case filing. IRS standards for certain expenses are taken into consideration, Necessary deductions for reasonable and necessary living expenses are considered. The bottom line is that by far most who would have qualified to file Chapter 7 before the law changed can still file Chapter 7,  And Chapter 13 is still almost always available to provide debt relief.
  
• Consumer Credit Counseling: Those considering filing bankruptcy must complete consumer credit counseling from an approved agency before filing bankruptcy There are dozens of agencies providing the counseling, and the counseling is not difficult or time consuming to complete.
  
• Payment advices: The past 60 days of pay advice received from employers must be filed. This is to document income.
  
• Tax returns: A copy of the tax return most recently filed with the taxing authorities for the most recent year must be provided to the Trustee,  A Trustee is an attorney assigned to administer bankruptcy cases.