When somebody says they're going to file for bankruptcy it sounds easy right? Well, in order to file for bankruptcy there are some steps that need to be followed. There are 3 changes that now affect people before filing and they are the ticket in, the means test, and the ticket out.

Ticket In - If you want to file then you need to go to a credit counseling session. You need to attend this credit counseling sessions six months before you apply to file for bankruptcy. Also, your session cannot be done by just anyone. They need to be approved by the United States Trustees office.

Means Test - This is a test that is required under the new law. Your income is tested using a two part means test. This is a formula to determine if you're going to be able to afford 25% of your unsecured debt. Unsecured debt is things like credit card debt. From there they will determine how your income looks compared to the states average. Depending on what your income looks like compared to the state average will determine if your able to file for Chapter 7 bankruptcy.

Ticket Out - The ticket out is for you to attend a debt education class. This needs to be done by an approved provider. This callas has to be done before your bankruptcy is finalized. Lastly, the court will determine things like how much you should be spending on certain items like food and housing expenses. This will effect how much money you have that can go towards your debs.