The Economist has a fairly balanced treatment of American bankruptcy reform. It's worth reading.

Interesting passage:

Making bankruptcy more difficult has other, less attractive economic effects. Forced repayment plans can discourage people from working harder (or at all), since extra income simply goes to pay creditors. Making bankruptcy more unpleasant can also deter entrepreneurship; people starting businesses are often required to personally guarantee loans to their firm—and those without assets are often forced to rely on MasterCard and Visa for their seed capital.

Thanks Sameer.