Will credit cards drop their guard?

When the bankruptcy reform bill becomes law in October, it should benefit credit card firms by making it more difficult for consumers to file for bankruptcy. But the reforms could lull card companies into a false sense of security. Nadia Damouni explains

The bankruptcy reform bill, signed by President Bush in April, is likely to bring about sweeping changes, making it more difficult for consumers to file for Chapter 7 bankruptcy. But with just four months to go before the bill becomes law, many experts are debating whether a heightened sense of security in asset-backed securities (ABS) that use credit card receivables as collateral will result in some unsecured creditors loosening their credit quality standards, heralding potential disruptions