It is an abuse of the system to declare bankruptcy when you are getting over £30K a year on welfare.
Many families are deliberately getting their luxuries from catalogue shopping – such as Plasma TV's and furniture etc. When they owe 20K they declare themselves bankrupt and the catalogue companies can't get their stuff back. These families should have to pay some of the debt back by a deduction from their welfare income. Many have lots of children so get loads in welfare and can afford to run cars and have Sky TV.