Quite frequently, I hear people say that “I can’t file bankruptcy on my credit cards anymore because they changed the law.” This is not true, bankruptcy law was changed in 2005 to provide for a “means test,” but it affects only a very small percentage of individuals, quite simply, only those who make a pretty substantial income.

If  a person makes enough to where a “presumption of abuse” applies, you are then allowed to apply the I.R.S. fictitional standard of living expenses and deductions, which are quite generous, in order to rebut the presumption. The vast majority of those who need to file bankruptcy are not affected by the means test. And, in the unlikely event that the means test applies, most people would still be unlikely to have to pay back anywhere close to what they actually owed in unsecured debt (credit cards, medical bills, etc.) You could still file bankruptcy, but you would have to pay your unsecured creditors a percentage determined by your amount of discretionary income.

So, the answer is yes, you still can file for bankruptcy.