mr. speaker , it 's time for congress to enact meaningful bankruptcy reform . 
unless we take action , people will continue to abuse the system by filing for bankruptcy as an easy out . 
when people avoid their debts , someone still has to pay . 
companies absorb the cost of unpaid debts by passing along these costs to consumers . 
over a million people file for bankruptcy each year . 
many of these filings are legitimate attempts by debtors to pay their debts and obtain a fresh start . 
however , bankruptcy is too often used as a way to avoid responsibilities . 
unnecessary bankruptcy filings continue to increase at dramatic rates . 
often , individuals go on spending sprees for luxury goods and services just before filing for bankruptcy , knowing that they can wipe the slate clean and avoid paying for what they bought . 
this is bad for consumers and bad for our economy . 
when individuals avoid their debts when they could be paid off , the costs are passed on to america 's businesses and consumers . 
we must ensure that debtors actually belong in bankruptcy and are not using the system to avoid their obligations . 
this bill stops abuse by eliminating incentives in the current bankruptcy system that actually encourage consumer bankruptcy filings and abuse . 
it requires those who can repay their debts to do so . 
it also gives courts greater power to dismiss frivolous or abusive bankruptcy filings and punish lawyers who encourage these filings . 
this bill also contains provisions i support to address those who abuse state homestead laws and attempt to shelter their wealth in multi-million dollar mansions . 
it requires a debtor to own their homestead for at least 40 months before he or she can use state exemption law . 
and , if a debtor has committed an intentional tort , a criminal act , or violated securities laws , their homestead exemption will be capped at $ 125 , 000 . 
these provisions will close the loophole that currently allows debtors to abuse the homestead provision . 
this legislation will encourage personal responsibility , protect consumers , and ensure that bankruptcy is used only as a last resort and is not abused by those who can afford to repay their debts . 
