Despite recent attempts to curb the number of bankruptcy cases in the U.S., the number continues to rise according to data released last month by the Administrative Office of the U.S. Courts. The Bankruptcy Abuse Prevention and Consumer Protection Act, which was passed in 2005, attempted to reduce bankruptcy filings by funneling the majority of cases into Chapter 13 and requiring more of bankruptcy attorneys. Add that to President Obama’s plan of limiting the amount of bankruptcy cases as a result of foreclosure and it is puzzling to see bankruptcy cases continue to rise.
Bankruptcy in the Past Year: The Numbers
• 388,148 filings between January and September 2009 – up 17 percent from last year’s 330,394
• Consumer filings climbed 18 percent to 373,541
• Business filings climbed just 2 percent to 14,607
• For the past 12 months ending on March 31, there were 1.53 bankruptcy filings – up 27 percent from last year and the most since 2006
NOTE: Most experts agree that bankruptcy figures should remain above 1.5 million for the near future.
Dissecting Bankruptcy Numbers
There are a number of causes which can explain the surge in bankruptcy cases despite governmental efforts to curb such cases. Rising unemployment, lack of insurance, the housing crisis, and the sour state of the economy in general might be enough to explain the trend.
If you are finding yourself in the face of insurmountable debt as the result of any of the aforementioned causes then it is important to take action today. Regardless of the number of bankruptcy cases in America, bankruptcy is a protective service available to you so you should use it if applicable. Talk to a bankruptcy attorney about your financial situation and find out once and for all whether you should solve your debt problems by filing bankruptcy.
