President Bush signed a new bankruptcy reform bill into law today that will change the way Americans who file for bankruptcy protection will be handled. Under the new law, it will be substantially more difficult for Americans to eliminate their debts and 'start over.'

The president announced, 'Bankruptcy should always be a last resort in our legal system. If someone does not pay his or her debts the rest of society ends up paying them.'

Banks and credit card companies had been lobbying for this type of legislation for approximately eight years. Now, any debtor earning more than a certain amount of money will have to enter into a repayment plan for credit card and medical bills after filing for bankruptcy rather than having their debts eliminated. The income level will be the median income level of the state the debtor lives in.

As he signed the new law, Bush declared, 'The act of Congress I sign today will protect those who legitimately need help, stop those who try to commit fraud and bring greater stability and fairness to our financial system.'

Critics of the new law say it will hurt the middle class at the expense of banks and big businesses.

The new law does not take effect until six months from today. Experts predict a large increase in the number of bankruptcy filings during that time.