Welcome to the Bankruptcy section of our website* [which now includes information about the new law   that went into effect on October 17, 2005] *We are a debt relief agency. We help people file for relief under the bankruptcy code* Click here for more detailed information about the new bankruptcy law as well as answers to commonly asked questions. FILING UNDER THE NEW BANKRUPTCY CODE: CHAPTER 7 In actuality, it is not really preventing many people from filing a Chapter 7 and most of our former clients would have qualified under the new law. Basically, in order to file a Chapter 7 since the new law went into effect in October of 2005, all debtors are required to complete a credit counseling course prior to the filing of the bankruptcy (it can be done on line - we will provide a list of approved services upon request). In addition, the prosective filers must complete a "means test" which requires a debtor to show all gross income for the six complete months prior to the month of filing, and then take an average of the six months.  If the average amount is less than the median household income for the state, then the means test is not an issue.  Even if the average amount of income is greater than the median income, we can still file but we need to do further calculations to make and use IRS guidelines on the types of expenses that a debtor is allowed to take.  If there is excess net income, then the debtor may be prevented from filing a Chapter 7.  The bottom line is most people can probably do a 7 under the new law and you definitely should contact us for further information.  We do NOT charge for an initial consultation.