Without regard to any particular level of indebtedness, the issue of substantial abuse speaks to a debtor's purpose and intent in seeking the protection of the bankruptcy code. A fundamental purpose of bankruptcy law is to afford to qualified debtors the opportunity of a fresh start. Bankruptcy, therefore, represents a solution to problems that result from either misfortune or mistake. When the use of bankruptcy becomes part of the problem, however, that use loses its legitimacy and becomes a vehicle for substantial abuse. The key distinction is whether a debtor uses bankruptcy to solve unintended difficulties, or as part of a broader scheme or device to avoid personal responsibility for one's conduct.
Every human is capable of making a mistake.
Gambling and substance abuse are examples of personal weaknesses that can have enormously adverse consequences for one's financial well-being. Some individuals are prone to over-spending. Others make investment decisions which, in hindsight, are ill-advised. Such faults and failures may cause the creation of substantial indebtedness. So long as insolvency is an unintended result of the debtor's conduct, bankruptcy offers an opportunity to overcome the problems of one's past.