Personal Bankruptcies up by 30% in 2009
Posted on Jan 22, 2010 1:39pm PST
In the year 2009, it is reported that consumer bankruptcy filings increased 30% compared to 2008. Last year, 1.4 million individuals throughout the U.S. filed for bankruptcy protection after becoming unemployed. Many also chose to file for bankruptcy because they were facing foreclosure on their homes.
Back in 2005, Congress changed the bankruptcy laws so that it could limit people's abilities to quickly get rid of their debt. The new laws especially impacted Chapter 7 filings. Now, with the economy being weak, the law's impact on bankruptcy filings has been limited.
According to reports, many people are opting to file for Chapter 7 bankruptcy, also known as liquidation bankruptcy. Less people are choosing to file for Chapter 13 because they claim they cannot afford to repay their debts to creditors. This means that creditors are receiving less money from consumers who owe them money and are struggling.
With the escalation in bankruptcy filings, more people are choosing to utilize the services of bankruptcy lawyers. Often times, consumers discover that by working with attorneys, they are able to complete the bankruptcy process in less time. This enables them to move forward with their lives and start fresh.
Click here if you are in need of a bankruptcy attorney who can help you file for Chapter 7 or Chapter 13!