The bankruptcy rate has skyrocketed over the past few years and now it's four times as high as it was in the early 1980s.  Research has shown that many who file for bankruptcy actually have the capacity to repay some of what they owe, but instead choose to walk away from their debts.  This costs the average American family $550 in increased costs for consumer goods and credit. 

 I have cosponsored H.R. 975, The Bankruptcy Abuse and Prevention and Consumer Protection Act of 2003.  This bill ends the abuse of the bankruptcy system as a financing technique by those who can afford to pay, while preserving bankruptcy protection for those Americans who simply cannot afford to pay back their creditors. 

H.R. 975 creates a fair, needs-based system that takes a debtor's individual circumstances into account.  It uses a median income to determine the ability to pay that is far above the poverty level.  The bill also allows for "special circumstances," such as recent job losses or medical hardships.

We need to put common sense and accountability back into our bankruptcy laws and this bill does just that.