Summary of Law for Bankruptcy Filing
Bankruptcy laws changed in 2005 in three key ways. These changes are referred to as ticket in, means test, and ticket out.
Ticket in is a credit counseling session that the petitioner for the bankruptcy filing must attend six months prior to applying for bankruptcy. This must be conducted by a non-profit agency that's approved by the US Trustees office.
Means test determines whether you can file for chapter 7 bankruptcy. Your income is tested in a two-part means test that exempts certain expenses and also compares your income to your state's average. If your income is above average and you can pay 25% of your debt, you cannot file under chapter 7 but may be able to file chapter 13 instead.
Ticket out requires that you attend a debtor education class from an approved provider before your bankruptcy can be finalised.