“Today, we voted to make bankruptcy a last resort, not a financial planning tool,” said Gingrey.  “S. 265 absolutely protects individuals suffering from medical and economic catastrophes by shielding them from mounting bills they can’t pay.  But it also prevents wealthy people from using bankruptcy to hide assets and abuse the system.” 

Under S. 265, debtors who make less than their state’s median income – an estimated 80 percent of all bankruptcy filers – will still qualify for full discharge of their debts through Chapter 7 bankruptcy protection. 

“This was the right bill to pass,” said Gingrey. “We’ve done a great job protecting those in need while ridding the system of fraud and abuse.”