The fact that more American families are using the bankruptcy system does not justify enacting a credit industry wish list of changes to the Bankruptcy Code. It is not valid to conclude that greater use of the bankruptcy system is connected with greater abuse of the system. The vast majority of bankruptcy debtors are facing foreclosure, repossession, utility shut-off, wage garnishment or debt collection harassment.
Consumer lending continues to be one of the most highly profitable businesses in the United States.
The bankruptcy system is being scapegoated by the credit industry. Most of the debts which are addressed in the bankruptcy system wouldn't have been paid back under any scenario. A percentage of any group of borrowers are going to be vulnerable to unexpected financial problems. That percentage increases with credit card solicitations to risky borrowers like college students and others who can afford only their minimum payments. The credit industry could reduce the number of filings itself, by accepting payment agreements and taking other reasonable actions to work with borrowers experiencing financial problems.