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 .  