Does the Bankruptcy Reform Act of 1978 invite abuses and serve as a “loophole for deadbeats’?” A charge to that effect has been made by an official of a national lending association which reports an 82 percent increase in personal bankruptcies last year and attributes this in part to the new law. a worsening economy. and “bankruptcy specials” advertised by lawyers. The National Consumer Finance Association. which represents more than 700 lending firms. says 380.615 Americans went bankrupt during the 12 months that ended last Sept. 30. an increase of 171.072 over the previous year. A United Eress International news dispatch quoted Walter Kurth. president of the association. as saying the new law was designed for those “in genuine financial distress” but has become a “loophole for deadbeats.” something Congress did not foresee. Kurth contends that “many individuals who could meet their credit obligations are simply taking advantage of a system which permits bankruptcy ‘on demand’ whether their financial condition warrants.” He believes that if bankruptcy abuses aren’t ended, creditors may be forced to pass bankruptcy costs along to all responsible borrowers and tighten credit criteria. The news dispatch also quoted a spokesman as saying the association surveyed 10.000 ads placed by lawyers in a three-month period last summer and found many “touting bankruptcy instead of credit counseling as a way out of financial difficulty.” The claimed abuses warrant a close look. Maybe. after the initial experience with the Bankruptcy Reform Act. Congress needs to consider an overhaul or at minimum. some adjustments.