Despite Personal bankruptcy filings having climbed to record numbers for the second month in a row with 170,130 filings in April, credit card chargeoffs seem to be holding stable, according to a report from Fitch Ratings. April's numbers represent a 3% increase over March 2005 and are seen as the continued fallout of the April 20, enactment of the Bankruptcy Reform Act.

The new bankruptcy law, which becomes effective Oct. 17, will require a means test for filers, making it more difficult for consumers to discharge their credit card debt. Despite the near-term spike in bankruptcies, the rule is seen as beneficial to credit card ABS in the long term, as more consumers will likely be on the hook to pay off more of their credit card debt.

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