President Bush signed the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 into law today (S. 256 109th Cong. (2005)). The bill is intended to end abuse of the bankruptcy system by making it more difficult for individuals with income above their state’s median level to clear debts through bankruptcy, forcing them to work out strict repayment plans instead.

Although the bill was designed to prevent individuals who run up large credit card bills from using bankruptcy to escape their debts, it also has severe consequences for individuals who need help due to staggering medical bills. For example, a family driven to bankruptcy by the costs of caring for an elderly parent with Alzheimer’s disease is treated the same as someone who maxed out his credit cards at a casino.