Creditors Deserve Better Bankruptcy Reform

While the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 was rightfully heralded as an attempt to address many common abuses by debtors, the financial services industry still finds itself at a disadvantage to serial filers holding up the recovery process.

By repeatedly seeking the protection of the automatic stay, these distressed business owners and individual consumers are unnecessarily dragging out the process of getting money and property back to the creditors. As a result, financial institutions are all too often mired in these legal technicalities rather than providing new loans to more viable candidates who might be better positioned to help grow the economy.