Current Bankruptcy Law

Many people believe when the bankruptcy law was reformed in 2005 it made it much harder to file or that they could no longer file for bankruptcy. However, bankruptcy is still a viable option for many, and you should educate yourself and schedule a free consultation to determine whether or not bankruptcy is appropriate for you.

Bankruptcy Abuse Prevention and Consumer Protection Act of 2005

Congress made several significant changes to the bankruptcy law in 2005. Those changes made it harder for people with higher incomes to file for Chapter 7. Instead, they can file Chapter 13 where the debts they incurred are discharged only after they’ve repaid some portion of the debts.


Whether you’re eligible for Chapter 7 (discharge) or Chapter 13 (repayment) will depend on your income. If you have a higher income, you may not qualify to have all your debt discharged but will have the option to repay your debts under a new agreement.

The income criterion is based on the state in which you live. If your household income is equal to or lower than the median income for your state, you can still qualify for Chapter 7 bankruptcy—assuming you meet other qualifications. If your income is higher than the median, you must pass “the means test” in order to file for Chapter 7.

The law also requires documentation, so you must be prepared to show your pay stubs, bank records, tax returns, and provide additional information.

Additional Requirements

All debtors who file bankruptcy are also required to get credit counseling through an approved agency before filing, and additional counseling on budgeting and debt management before the bankruptcy can be discharged. Both these counseling requirements can be completed online.

We Can Help

For further information about your ability to qualify for bankruptcy contact us. Navigating the bankruptcy process can be confusing and hard to understand. That’s why I offer a free consultation and am happy to sit down with you and answer all your questions and address all your concerns. I’ve been doing this for over 20 years and will make the consultation comfortable and easy while giving you the information you need to make an informed decision on your future. Call  (509)921-9500 to schedule an appointment today.

Free Consultation

Real concern, real help, and the consultation is free.

MichelleSpokane, WA

The best part of the experience with Rob Hahn was the reassurance that things will work out and that we could ask any question without feeling judged. Thank you to all the staff for making the bankruptcy process a little less stressful. We truly appreciate all the guidance and care.

Call for a FREE Consultation