Common misconception. The recent amendments to the bankruptcy code (Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA)) do NOT get rid of Chapter 7 discharges.
In fact, it may even be easier. Time will tell, but that's what the consumer bankruptcy lawyers are saying.
It does throw a couple of procedural roadblocks in the way, but those are easily surmounted.
The new law basically says you must try a repayment plan or "consumer credit counseling" first before you can file Chapter 7. And-if you make more than the median income for your area you generally can't file a 7, but even in those cases I think it can be done in these types of circumstances.