Bankruptcy law does have supporters
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• The means test measures whether consumers can pay off their debts. The test assumes that debtors can repay debts if they earn more than the median income in their state and have more than $100 per month left after taking out living expenses and other important payments.

• Repeat filers are obstructed by lengthening the minimum time between bankruptcies. The minimum time between sequential Chapter 7 discharges has gone from six to eight years. If they want to file for Chapter 13, they will not receive a discharge within two years of a previous Chapter 13 discharge and within four years if they were discharged from a Chapter 7, 11 or 12 bankruptcy.
• The ability of debtors to "load up" on luxury items before filing bankruptcy is limited. Consumer debts that surpass $500 for luxury goods or services incurred within 90 days of filing are nondischargeable, which is more restrictive than the previous limits of $1,075 and services incurred within two months.
• The law revises the automatic-stay provision to recognize that when an apartment owner has obtained a default judgment, which is the final decision where the judge rules in favor of the apartment owner in an eviction proceeding, the resident can't file a bankruptcy petition to further delay the eviction. Thus, the owner can move forward with removing the resident.
• Caps are put on homestead exemptions. Wealthy filers attempting to protect millions of dollars from creditors by purchasing pricey homes in a state with an unlimited homestead exemption face an additional hurdle. The new law states that debtors are bound by the homestead exemption of their prior state of residence until they have lived in the new state for two years.
• Child support and alimony payments have higher priority.

In addition to stopping the abuse, Zywicki says the law protects consumers.

"It's got a number of consumer-protection provisions, such as greater restrictions of debtors to reaffirm debts and penalty provisions for creditors that don't accept good-faith efforts for debtors to repay voluntary payment plans."

Bartlett believes the new bankruptcy law forces better decisions and earlier choices and is ultimately about responsibility for creditors, consumers and the legal system.

"The legal system has the responsibility to protect people in need, while at the same time offering vital safeguards for consumers," he says. "The industry has the responsibility to provide educational information to support consumers' financial education, and the consumers have the responsibility to honor their debts when they are able and to be aware of their options so that bankruptcy is a last resort."