Erasing debts in bankruptcy to get harder

The overhaul is intended to make it more difficult for consumers to file for bankruptcy under Chapter 7, which allows debtors to erase their debts after they sell some of their assets. It will set up a new "means test" that will send more debtors into Chapter 13, forcing them into court-ordered payment plans. People with incomes above a state's median income who could pay at least $6,000 over five years would be expected to make payments.
Last year, nearly 1.6 million Americans filed for bankruptcy, including 17,076 in Minnesota. The new law could affect between 30,000 and 210,000 bankruptcy filers a year, according to the American Bankruptcy Institute.
Republican leaders were jubilant after eight years of failed attempts to change the law. It's expected to take effect six months after its enactment.
...Critics cited a study done by Harvard University in February which found that half of all personal bankruptcies are the result of medical bills.