WASHINGTON -- Capping one of his biggest legislative victories in his second term, President Bush enthusiastically signed a major overhaul of federal bankruptcy law yesterday, making it more difficult for Americans to wipe out their debts.

But until the new law goes into effect in six months, bankruptcy lawyers are expected to be filing about twice as many cases as normal, according to the American Bankruptcy Institute. That is because many people are rushing to file before the law changes.

The law says some of those who currently are able to file Chapter 7 and wipe out debt that they say they can't repay will be pushed into Chapter 13, which means they will be given a judge-ordered schedule for repaying their debt at a set amount per month over three to five years.

The new law also will make bankruptcy more costly, requiring those contemplating bankruptcy to pay for credit counseling before they go to court.

Prodded by the consumer credit card industry and retailers, Congress has been toying with changing bankruptcy regulations for nearly a decade. But when Republicans captured control of Congress and Bush made it a priority, the industry-sponsored provisions overwhelmingly passed the Senate and the House.

As Bush signed the bill into law, he said, "By restoring integrity to the bankruptcy process, this law will make our financial system stronger and better. By making the system fairer for creditors and debtors, we will ensure that more Americans can get access to affordable credit."

But consumer organizations overwhelmingly criticized the bill as unfair and harsh toward low-income families forced into bankruptcy by unplanned medical bills, job loss or divorce. They especially criticized the move to force debt-ridden consumers into credit counseling.

The National Consumer Law Center and the Consumer Federation of America recently did a report on the large increase in credit counseling and found what it called an alarming rise in deceptive practices, excessive fees, improper advice and abuse of nonprofit status.

But the National Retail Federation said it welcomed the signing of the "long-awaited bankruptcy reform legislation." The federation complained that bankruptcy had changed from a stigma to a financial planning tool. "Every one of those filings means more bad debt that gets passed on to consumers, and consumers are tired of picking up the tab," the federation said.

Bush agreed. "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." He added, "The act of Congress I sign [yesterday] will protect those who legitimately need help, stop those who try to commit fraud and bring greater stability and fairness to our financial system."

The new law imposes a means test that will make more families ineligible for the Chapter 7 plan to wipe out their debt and start over. A family with too much debt would have to file Chapter 13 -- and pay off their debts -- if they have income above the mean for their state -- ranging from $45,867 in New Mexico to $82,561 in Massachusetts.

Some bankruptcy lawyers are wary of the new law because it makes them accountable for inaccurate or misleading statements by their clients. As a result, many are expected to increase their fees significantly, which now may range between $1,000 and $3,000 for an uncomplicated bankruptcy for a family of low to moderate means.

Although Democrats and Republicans voted for the law, significantly more Democrats complained that it did not universally prevent wealthy people who file bankruptcy from putting their money into wealthy homes, which in some states such as Florida and Texas are excluded from assets that can be sold to pay off debts. Also, a number of Democrats wanted new restrictions on the credit card industry's practice of extending credit to college students.

Some opponents of the new law say they think that it may force more desperate families in financial trouble to move to another state, leave no forwarding address and walk out on their debts that way.

The number of bankruptcy filings is not insignificant, totaling about 1.6 million a year. The bankruptcy institute has estimated that the new law might disqualify up to 200,000 from filing Chapter 7 and thus wiping out most of their debts in exchange for their assets, such as their homes. Others say it will keep as few as 30,000 families from wiping out their debts and starting over.

Bush singled out two provisions of the new law he said would be good for the consumer and good for the country. One requires credit card companies to tell consumers "upfront" what interest rates and penalties will be if they are late in making a payment. He also praised the section of the new law that will make a debtor wait eight years before again filing for bankruptcy, saying this will decrease the number of "serial abusers."