Prior to 2005, many lawmakers saw an abusive trend of bankruptcy laws that allowed people to indiscriminately run up credit cards, buy cars, purchase plane tickets, take luxury vacations and receive cash advances just before filing for chapter 7 bankruptcy. This has left many creditors holding the bag for products that will never be paid for by individuals who calculated their times of purchase to coincide with court mandated restrictions of credit collections. Other abuses have been common for years that range from poorly managed finances and unreasonable investments that may not have had to occur with proper money management. While many people legitimately qualify for filing for bankruptcy as a result of situations they can’t control, the misuse of the legal system spurred changes to chapter 7 bankruptcy laws that has made it harder for those who attempt to take advantage of the system for their own purposes.
