We do need reform. We are operating very much in a "creditor beware" society that makes it difficult to lend money. The credit has to be more gilt-edged than otherwise would be the case because of the delays and horror stories that come out of the bankruptcy system. There is a particular need to deal with the delays that are more form than substance, the delays just for the sake of delay while the collateral position deteriorates. The delays don't usually mean the lender does things differently, only 600 days later. And they don't really do much for borrowers. In 20 years, I have not seen a case where they have been helped.

A lot of abuse and even outright fraud is taking place under the bankruptcy laws now. The bankruptcy courts are very debtor-oriented and sometimes assign unrealistically low values to automobiles and consumer goods. It is hard for creditors to get a fair hearing. Some reforms to level the playing field are certainly going to be welcome if they happen.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.