This rapid rise in personal bankruptcies and a near-record high in business bankruptcies is a trend that must be reversed. L. Wesley Smith, President of the Northwest Georgia Bank in Ringgold and the 1998-99 Chairman of the Georgia Bankers Association said, "We believe education is one of keys to help consumers and businesses understand the consequences of filing bankruptcy. There are other alternatives to bankruptcy many people never consider simply because they oftentimes do not know what to do with mounting debts. Far too many people consider bankruptcy as their first alternative, instead of their last resort as contemplated by the bankruptcy laws over the years."

U.S. bankruptcy laws were first written around the turn of the century to provide a fresh start for people who through hardship or loss were unable to meet their financial responsibilities. No significant changes we

re made to this law until 1978, when Congress passed the Bankruptcy Reform Act making it easier for consumers to declare bankruptcy - and more difficult for creditors to collect debts.

There are options available that can prevent any long-lasting harm to an individual's or businesses' credit record. Managing money better is obviously the first step. Quit spending more than you are making. Talk to your lenders. It is in their best interest to help you reorganize your debts, extend your payment periods, help consolidate or refinance debts. And, counselors at the non-profit Consumer Credit Counseling Service (CCCS) can also help resolve debt problems, usually without charge. In his concluding remarks before the U.S. House of Representatives last year, Mr. McCollum stated, "By ensuring that our bankruptcy laws are not abused, we also ensure that bankruptcy remains a viable last resort for those who have tried to pay their debts but were driven by circumstances to ask for judicial intervention into their personal finances. If we do not reform the system and stem the explosion in bankruptcy filings caused by bankruptcies of convenience, the cost of credit will inevitably increase while its availability will begin to decrease. Such a tightening of credit will especially impact the working poor. In addition, these reforms will protect those responsible borrowers who meet their financial obligations but end up paying for those who abuse our bankruptcy laws."

Chapter 7 is where the tremendous growth of personal bankruptcies has occurred and many individuals file for liquidation without ever having missed a payment on a loan. The growing number of business and consumer bankruptcies caused Congress to create The National Bankruptcy Review Commission to make recommendations to the Congress on ways to both improve the system and to limit bankruptcy protection to the truly needy. As with any Commission of this nature, their recommendations will not be

Some common words found in the essay are:
House Similar, Review Commissioners, Code Chapter, Representatives McCollum, Review Commission, Reform Act, Bankers Association, Protection Act, , Bankruptcy Court, chapter 7, bankruptcy laws, personal bankruptcies, chapter 11, rapid rise, bankruptcy filings, bankruptcy laws bankruptcy, consumer bankruptcies, pay debts, business bankruptcies, consequences filing, consequences filing bankruptcy,
Approximate Word count = 1318
Approximate Pages = 5 (250 words per page double spaced)