We are always happy to provide video or telephonic consultations. Give us a call!
  • Home
  • Client Portal
  • Chat Now!
  • Contact Us
Price Law Group
866.210.1722 Se Habla Español
Make a Payment
live chat button
  • Home
  • Meet Our Team
  • Bankruptcy
  • For Clients
  • Contact Us
  • Call Today
  • Email Us
  • Our Map
  • Menu
Bankruptcy Blog 2010 September Bankruptcies Reach 5 Year High
Previous Post  |  Next Post

Bankruptcies Reach 5 Year High

Posted By Price Law Group || 2-Sep-2010

In a recent article published on Reuters.com, Jonathan Stempel points out what has become obvious to many lawyers with full case loads and courts with backlogs: bankruptcies are still on the rise.

This is an uphill battle with a lot of problems, including high unemployment rates, the mortgage bust, and millions of Americans lacking in proper medical coverage.

According to government data, the U.S. bankruptcy filings have reached the highest point since 2005. The Reuters article points out how clearly unemployment is part of the problem. But it is more than that. With over 1 million filing bankruptcy in 2009, it would not have been wrong to see that as a watershed moment.

However, instead of improving, the economy is struggling. Consumer bankruptcies have not just gone up: since the calendar year as of June, we are looking at over 20% increase in filings.

Quarterly filings between April and June, cited in the Reuters piece, note how the problem is still less serious than the economic slump of 2005. In 2005, in one quarter over 600,000 consumers filed for bankruptcy.

Of note is that this is the year that new bankruptcy code made it more difficult to file for Chapter 7 bankruptcy.

According to the bankruptcy code changes of 2005, if you make more than the median income of your state, which can vary from $30,000 to about $50,000 per year for individuals, you are not eligible for Chapter 7 bankruptcy.

On the other hand, pushing consumers to file Chapter 13 not only encouraged financial responsibility but opened the door for less foreclosures to occur. If used correctly, a Chapter 13 bankruptcy can be more effective in protecting your home.

Because of the changes, filings for Chapter 13 increased. Whether this had a clear affect on the foreclosure rates may not be obvious. What we do know is that bankruptcies have once again increased. In the quarter of April to June, over 400,000 bankruptcies were filed, the first time the limit has gone that high since 2005.

This does not mean growth isn’t coming, nor does it mean filing bankruptcy is a bad idea. This news does mean there is a lot of work to be done.

If you are unsure of whether bankruptcy is right for you, it’s time to consult with a lawyer. If you’re scared you’ll lose your home, it’s best to act now. And if you have a huge debt over your head, understanding how the laws work can be invaluable.

Categories: Bankruptcy, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy

Share Post

For more information call us at 866-210-1722 or fill out the form below.

Practice Areas

  • Chapter 7
  • Chapter 13
  • Chapter 11
  • Collection Defense
  • Creditor Abuse
  • Debt Consolidation
  • Debt Counseling
  • Debt Relief
  • Debt Settlement
  • Foreclosure Defense
  • Short Sales
  • Tax Resolution
contact-btn
Close

Contact Us Today

Price Law Group - Bankruptcy Attorney
Call Toll Free: 866.210.1722

  • Home
  • Site Map
  • Privacy Policy
  • Contact Us
Price Law Group

Toll-Free (866) 210-1722

Price Law Group - Bankruptcy Attorney
6345 Balboa Boulevard, Building 2, Suite 247, Encino, CA 91316 View Map
Toll-Free (866) 210-1722
Website: https://www.pricelawgroup.com/
Price Law Group is managed by Steven Alpert
© 2022 All Rights Reserved.

WE ARE A DEBT RELIEF AGENCY. We help people file bankruptcy petitions to obtain relief under the bankruptcy code.

Internet Marketing Experts The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.