The Bankruptcy Abuse Prevention and Consumer Act of 2005 has now been passed by both the Senate and House of Representatives.

The law would make it harder for individuals to file for Chapter 7 bankruptcy, which erases most debts.  Individuals who earn more than their state's median income would be required instead to file a Chapter 13 bankruptcy, which establishes a payment plan.

Those considering filing for any bankruptcy should plan ahead.  The bill becomes law six months after its passage.  I estimate this means the new bill will take effect approximately  October 1, 2005.