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Show THE VOICE OF BUSINESS EScanEtrupfcy !iw eiSSows Segal flheft By Richard L. Lesher. Chamber of Commerce of the United States When you sit down to pay your monthly bills, how would you like to pay some of the neighbor's bills as well? If you don't take that suggestion too kindly, I hate to break the news you already are. Over a half a million Americans filed for personal bankruptcy last year, forcing the rest of us to foot a bill that runs into the billions of dollars. This represents a 75 percent increase over the bankruptcy rate in 1979. Self-described "Consumer advocates'' ad-vocates'' have been quick to blame touyh economic conditions for this increase, but the evidence is clear that the Bankruptcy Reform Act of 1978 has made personal bankruptcy easier. The laws of human nature suggest that when you make it easier to rip off the system, more people will do just that. Recent studies by Purdue University's Univer-sity's Credit Research Center and the National Credit Union Administration indicate that there has been widespread debt abuse since the 1978 act took effect. Under this law, an individual in-dividual can file for bankruptcy under Chapter 7. na here debts are discharged, or under Chapter 13, w hich provides for at least partial payment. Filing under Chapter 7 is facilitated because the new code does not consider future income in determining an individual's in-dividual's ability to repay his debts, but only a portion of his present assets. Thus, persons with solid jobs and good incomes are still completely excused from their debts, simply because thev don't have the resources at the present time. The effect of this and other loopholes is predictable. The Purdue study Hisrmered that four out of ten people w ho filed for Chapter 7 bankruptcy la year could afford to pay 50 percea or more of their non-mortgage debts uttt five years. Twenty-nine percent cajj repay all their debts over five yea.i Instead, responsible consumers rj pay those bills in the form of hizber interest rates, scarcer credit ad steeper prices. One of the strengths in 03 democracy is that we have the ability correct our mistakes and there is tr strong movement in Congress a' rewrite the Bankruptcy Reform Act. Rep. Billy Lee Evans (D-C-a). r voted for the 1978 law. has introduce legislation to correct the debt abj that it has spawned. j Chief among his proposals is thi-individuals thi-individuals should not be allowed a declare bankruptcy if projections show that they could rei part of that debt in the future. T legislation would also stretch from f:i years to seven years the period 1 u hich partial or full repayment of de!ts could be required under Chapter 11 These legislative changes are i porlant, but let's not overlook tie broader perspective of this iss. Unfortunately, there are those who it attempting to turn this issue into 1 business versus consumer bailiff portraying businesses who simply wiat their bills paid as greedy pra'2 mongers shaking down hapless customers. That's just a smokescreen to obscxe ' hat rests at the heart of this critKil issue: When an individual bonw 1 something from another, he has 1 moral commitment to repay that deit No matter how fancy you get with t! laws, that commitment is still binr. and allowing for a few extraord.ni , cases, it should be honored. Anyttinj less is just stealing in another farm |