The House of Representatives approved a new bankruptcy bill, which removed the last obstacle for a major overhaul making it more difficult for consumers to escape from their debts.

The package was passed by the House followed a Senate vote March 10.

Meanwhile, the measure which implements an essential change in the bankruptcy procedures is expected to be signed into law by President Bush in a few weeks. It is expected to go into effect six months later.

The overhaul is designed to establish requirements that will force more consumers to pay back their debts.

But the measure also puts foreword provisions that might boost some businesses to file for bankruptcy protection in advance of the law taking effect.

The measure states that companies will have a limit of 18 months to offer a reorganization plan in order to file for Chapter 11 protection. The provision changes the previous procedure when business could have been granted by judges numerous extensions which could continue for years. Meanwhile, exceeding 18 month limit means that creditors can step in with their proposal.

But the main shock of the overhaul falls on consumers.

The legislation puts certain limits for consumers’ usage of Chapter Seven of the U.S. Bankruptcy Code to write off credit-card bills or loans if they are not secured by a house or other asset.

The bill for the first time provides for the bankruptcy court a strict "means test" to control the way people with assets repay some of their debts.