« • - M ANCHESTER HERALD. Monday. Sept. 26. 1983 BUSINESS Main Street revisions What to do when Tennis courts upsetting to merchants a gorilla says hi start afresh .. page 11 ... page Iff Reform is long overdue in consumer bankruptcy laws p a g e 3 Jr. i Progress toward reform of the mess in our system dramatically In both categories. While people, open whether individuals who could repay their debts of consumer bankruptcy has been glacial in 1983 — but especially in the credit industry, argue that the out of future income are, in fact, choosing Chapter 7. the need for action is now becoming urgent. The increases were caused by changes in the bankruptcy Estimates are that as much as $1.5 billion of the debt stalemate has arrested resolution of two critical Your code, others point to the back-to-back recessions in the discharged in Chapter 7 could be recovered it some Issues: 1) the system of bankruptcy judges; and 2) the economy in 1980-81-82, inflation in the double digits, debtors filed for Chapter 13 instead. usa (or abuse) of personal bankruptcy itself. Money's high unemployment and consumer debt. A bill sponsored by Sen. Robert Dole, R-Kan., would Manchester, Conn. A long-awaited report by the General Accounting Worth The GAO report provides support for both let judges reject the petitions of people filing for Clear tonight; Office about consumer bankruptcy will be a viewpoints.-For instance, the GAO says clearly that Chapter 7 if they think the debtors are abusing the sunny Wednesday Tuesday, Sept. 27,1963 centerpiece in the approaching congressional deliber­ Sylvia Porter the revision of the bankruptcy laws was responsible system. The bill is supported by the credit industry ations about several reform bills awaiting action. for no more than 6 percent of the personal and is opposed by many consumer groups. — See page 2 Single copy: 25« On the issue of bankruptcy court judges, a deadline bankruptcies since 1979 (when the law took effect) and Other bills would make less sweeping changes but iManrbrat^r looms of March 31, 1984. On that date, the term of all l^rhaps even less, since factors such as advertising would alter the bankruptcy codes dramatically bankruptcy judges will expire. Adding extra pressure t>y lawyers and the diminished stigma attached to nevertheleM. to the situation, our bankruptcy courts are operating Bankruptcy Reform Act of 1978, the first major bankruptcy couldn’t be factored into the statistical-— It is clear that corrections in the entire personal under interim emergency rules since the Supreme reform of the bankruptcy laws in 40 years. The critics analysis. / bankruptcy code and the system of bankruptcy judges Court decision in June 1982 invalidated the system. claim it made bankruptcy an acceptable alternative are essential — and soon. Abuse does exist, although J The issue of judges is complex and technical. It will, to repaying debts, citing outrageous instances among W HILIf 6 PE RC E N T is, not insignificant, this we cannot pinpoint its extent. Whatever the degree, however, be taken up by the House soon because H professionals who had filed petitions. percentage cannot be reconciled with widespread the abuse adds to the cost of bankruptcy — and that / cannot be avoided. In April, the Senate passed a bill Not only are they filing for bankruptcy but they abuse. cost we all pay. Cable TV patterned on the Interim rules promoted by the U.S. choose Chapter 7, which provides liquidation and But another key finding^ives ammunition to the TROUBLED Judicial Conference, the policy-making division of the distribution of the debtor’s assets, with certain credit industry and its supi»rters. That finding is that (“ Sylvia Porter'sNew Money Book of the 80s,’’ 1,328 federal judiciary. notable exceptions, such as alimony, child support 42 percent of those who file for Chapter 7 reported jiages of down-to-earth advice on personal money 2 Meanwhile, consumer bankruptcies continue to pile and taxes. income, asset and debt levels very similar to Chapter management, is now available through her column. up, overloading the only way out for those who The alternative. Chapter 13, provides for a 13 debtors who filed for bankruptcy in the same court rates go up 2 Send $9.95 plus f 1 for mailing and handling to “ Sylvia desperately need a fresh start. court-appointed repayment plan that allows the .'district. Although the report adds that the authors Porter’s New Money Book for the 80s,” in care of this AIRLINES debtor to retain his or her assets. cannot conclusively say that such debtors could repay newspaper, 4400 Johnson Drive, Fairway, Kan. 86205. THE OVERLOAD is traced by some to the There’s no disputing that bankruptcies have risen their debts out of future income, the question remains Make checks payable to Universal Press Syndicate.) $3 a month Gold market • Continental flying Business By James P. Sacks 6 Herald Reporter 7 In Brief No luster now but it should shine again with few passengers NEW B R IT A IN '— Cable television subscribers in Manchester and five other area towns shouldn’t be taken aback if their November bill ibr basic, and the shooting down of a Korean Datatype Joins chamber BY Frank Schnaue on December gold at $400-5407. A rejection, Sherman said, would By Borboro Conettl ruled out but he said he had raised 35-channel service reads $14.95. UPl Business Writer airliner by the Russians — had a The gold dealer said the selloff will have repercussions throughout the Datatype, an information processing center for United Press Internotlondl the issue of safety with federal In future months after November — when a rate negligible impact on prices. come when this happens, adding financial system. “ Experience has typing, transcription, word processing and data agencies and urged (tengress to hike that received final approval from state officials NEW YO RK - Gold, after trading in “ The lack of reaction indicates a however there is major suiport at the shown that disruption to the smooth processing, has joined the Greater Manchester re-examine the wisdom of deregu­ this morning will be assessed retroactively for the $400-5450 range for six months, now weakness in the gold market,;’ the $380 mark., functioning of the world monetary HOUSTON — Bankrupt Contin­ Chamber of Commerce. lating airlines. October — they will be required to pay $11.95 per seems certain to go lower — some say analyst said. "Thus, the path of least Sorrentino said “ short term price system has led to surges in investment ental Airlines resumed service The business, located at 105 Main St., Hebron, is month. to $300 —. but many analysts believe resistance would appear to be contractions notwithstanding, gold is demand for gold.” today with a DC-9 that lifted off into "We feel the basic airline operated by Frost Krist and Patrica Mulligan. According to 0>x C:ommunications Regional that will pave the way for a solid downward.” likely to prove an excellent Investment foggy morning skies with six indsutry cis being damaged irrep- Their husbands, Joseph Krist, and Andrew Sorrentino said the single most Manager Robert F. McGill, subscribers to the basic advance in the months ahead. If the key support level of $400 an over the long haul. Whether or not the arabley,” he said. "W e think ' i.- - ‘ J - t ■<•4. Mulligan, are also involved in the operation and important factor brightening the out­ paying passengers bound for La­ .-.t- if i* - service package offered by Cox Cable Greater In 1975, when for the first time since ounce is decisively broken — chartists selloff takes place, the stage is being safety, eventually, will be their are three part-time emfiloyees. look for gold prices is the excessive fayette, La. Hartford will be billed the $14.95 In November to pay 1933 it became legal for Americans to would sell at the Feb. 28 low of $395-5396 set for a sustainable Increase in gold Datatype was started in October 1982. growth of the nation's money supply As the plane took oft from eroded.” retroactively the $3 per month increase effective next own gold, it was selling around $160 a. an ounce — gold may plunge to $320 and prices.” It is designed to serve as a continuous business over the past year. Houston Intercontinental Airport, Duffy said Continental's wee­ week. Beginning in December, most subscribers to troy ounce. On Jan. 21. 1980 the could even test the $300 cyclical Delays In Congressional committee' i • support of occaasionally for overflow business. It < Historically, a pick-up in the money a small group of employees kend bankruptcy proceeding and the system’s basic service package — which does not precious metal hit a record $875. It bottom, Sorrentino said. on the increase in U.S. contributions to also serves the general public through prepara­ supply has resulted in a reacceleration planned resumption of service include premium services such as Home Box Office or dropped back to around $300 in June of On the New York Commodity E x­ the International Monetary Fund could cheered. One, with tears in her tion of resumes, photocopies. It offers special of inflation a year or two hence, the constituted a "m oral abuse of the • the Playboy Channel — will be charged 30 percent 1982. change, where charts are widely pave the way for a new climb In the gold eyes, said even if only one person rates for students. S&P analyst said. The severity of the bankruptcy law.” He said the more than the $8.95 they currently pay. Anthony Sorrentino, precious metals followed, the major trading month for markets, according to Eugene J.