McCollum's bill also makes Chapter 13 more friendly to credit card companies. New litigation costs would be imposed on all debtors together with an opportunity for creditors to raise issues, which can only be raised now by bankruptcy court officials. The cost of bankruptcy would inevitably go up, hurting those at the bottom of the financial barrel. In addition, it would do nothing to hold creditors accountable for irresponsible lending, for example, by restraining their ability to extend consumers unlimited credit lines, requiring credit card companies to notify card holders and allow them to cancel before they increase credit rates, or capping the interest rate credit card companies can charge. They get divorced.
Most families now depend on two incomes to get by.
According to a recent study funded by the credit card industry, in 1996 two-thirds of all bankrupts filed under Chapter 7. The lead group backing the provisions of the McCollum bill is an ad-hoc coalition, the Bankruptcy Issues Council. Through these trade associations, the entire national banking industry is well represented. Powell-Tate is handling publicity for the group. The AFSA has hired Timmons and Company.