Gary Stern, CEO of publicly-traded debt purchaser Asta Funding, appeared yesterday on TheStreet.com’s Webcast channel in an interview segment called “StreetWatch.” In the interview, Stern discussed, among other things, the impact of bankruptcy code reform on Asta and debt purchasing as a whole.
Referring to the new bankruptcy code, Stern said, “There probably will be an increase in receivables available.” Stern said that he believes the new mean?s test requirement in the bankruptcy code will prevent many consumers from filing bankruptcy. Also, he said that many consumers would be forced into Chapter 13 bankruptcy rather than Chapter 7. In Chapter 7 bankruptcy, all of a consumer?s debts can be wiped out by the courts. Chapter 13 requires the filer to pay a certain percentage of their debts to their creditors over the course of five years. “Asta will be helped over the long run by the individuals that file Chapter 13,” commented Stern.
Stern also commented in the 15-minute interview that he foresees the price of portfolios coming down in the near future as prices have hit a plateau. Many in the debt purchasing sector have noted that the prices of debt portfolios have risen sharply in the past 18 months.
To watch a video of the interview on TheStreet.com, please visit http://www.thestreet.com/tsc/StreetWatch/index.html?movieid=16325&channel=342.
