This is a perfect example of the law of unintended consequences. Calling illegal aliens, undocumented persons maybe the PC thing to do but it fluffs over the legal issue. It is one thing to be here illegally, and then NO you cannot file bankruptcy, it is another to be here legally but not having applied for the necessary papers yet, e.g. green card, TIN, SSN.
Politics and the law never do make a good mix (Exhibit A: Bankruptcy Reform Act of 2005 (BAPCPA).