President Bush stated the Bankruptcy Abuse Prevention and Consumer Protection Act (effective October 17, 2005):
Will also allow us to clamp down on bankruptcy mills that make their money by advising abusers on how to game the system.Ahhh... the eternal hope of small government when things were going well. I guess levering a firm out the ass isn't "gaming" the system when former co-workers will bail you out, but I digress...
Among its many changes to consumer bankruptcy law, BAPCPA enacted a "means test", which was intended to make it more difficult for a significant number of financially distressed individual debtors whose debts are primarily consumer debts to qualify for relief under Chapter 7 of the Bankruptcy Code.
Well, at least when the consequences of our levered economy come crashing down, U.S. taxpayers that financed the bailout will have similar support... or not.