The numbers are in for 2005 and it was a record year with nearly 1 in 54 households filing for Bankruptcy in 2005 according to Lundquist Consulting Inc. The surge in Bankruptcy filings was in clear response to the new Bankruptcy law that went into effect Oct17th of 2005

Under the new Bankruptcy law it is more difficult to erase debts under  Chapter 7 , the new rules will mean more people will be forced to file under the Chapter 13 rules which make consumers with an income to make at least some payments to creditors , as well as force those people to consult with a credit counselor.

After the Law went into effect on Oct 17th , 60% of bankruptcy filings have been under chapter 13.
 

Read the United States Bankruptcy Code