Experts predict the number of people filing for bankruptcy could increase by 50 percent in the coming months.

In 6 months, the rules change and the chapter 7 option will be gone for many people. Chapter 7 bankruptcy is when the debt is basically forgiven.

President George W. Bush signed the new bankruptcy law Wednesday. The new rules don't go into effect until October, which means many people will be rushing to bankruptcy court to qualify under the old rules.

According to Susan Howe, president of the Pennsylvania Institute Of Certified Public Accountants, it used to be up to the bankruptcy judge to decide whether or not a person is qualified to have his or her debt erased, but not under this new law.

"In general, under the new law, if you make more than the median income in Pennsylvania, which is roughly $42,000, it is going to be harder for you to qualify under chapter 7 of the bankruptcy law," Howe said.

According to the new law, you have to make less than your state's median income to qualify for chapter 7. That leaves the chapter 13 option, which requires you pay back your debt within three to five years.

"One of the provisions of the new bankruptcy law is that you do have to repay more of your debt than you needed to under the previous law, so truthfully, it's meant to make consumers take more responsibility for the level of debt they get in and their ability to manage it," Howe said.

The new law is expected to send more people to credit counseling as well. If you are considering filing bankruptcy, here is what counselors recommend:

Figure out why you are in debt, so you can address the problem.

Seek credit counseling. It will help you identify your options.

Avoid taking a loan secured by your home to pay off credit card debt.

If, after all that, bankruptcy is your only option, you should seek help from a bankruptcy attorney. For a recommendation, contact your local bar association, your state's attorney general's office or the National Association of Consumer Bankruptcy Attorneys.

Changes In Bankruptcy Laws

Attorney General Links:

New Jersey

Pennsylvania

Delaware

State Bar Associations:

Pennsylvania State Bar

Delaware State Bar

New Jersey State Bar

National Association of Consumer Bankuptcy Attorneys