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. The Bankruptcy Abuse Prevention and Consumer Protection Act preserves bankruptcy protection for those Americans who simply cannot afford to pay back their creditors. But it ends the abuse of the bankruptcy system as a financing technique by those who can afford to pay.

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. The Bankruptcy Act also punishes corporate criminals who engage in financial deception. It prevents them from using state homestead exemptions in order to keep their multi-million dollar mansions and penthouses while filing for bankruptcy.

This legislation creates a fair, needs-based system that takes a debtor's individual circumstance 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.