Consumer Bankruptcy Cases Approaching Record Level

16 Jul Consumer Bankruptcy Cases Approaching Record Level

When Congress changed the bankruptcy law in 2005, cases spiked. People feared, and rightly so, that bankruptcy cases would get harder to file.

Guess what? Bankruptcy cases are spiking again. According the the American Bankruptcy Institute, consumer bankruptcy cases for 2009 will be at the highest level at any time since the 2005 peak.

There were roughly 675,000 consumer bankruptcy filings in the first half of this year, according to data released last week by the American Bankruptcy Institute.

If the current pace continues, more than 1.3 million consumer bankruptcies will be filed this year.

In a rather arrogant comment, the chief economist for a trade credit insurance firm laments,”the more bankruptcy filings, the harder it is for collection agencies to recover debts.” Boy do I feel sorry for them!

He also notes, grudgingly, that “debtors have become smarter about protecting their assets, So if a debtor has disposable income, he’ll put it into an IRA or some other vehicle outside of the reach of the bankruptcy court.”

Lesson to be learned?

Lesson to be learned?

  • Don’t let bill collectors hound you
  • Put your disposable income into an IRA or some other vehicle outside of the reach of the bankruptcy court (legally of course, and with the advice of competent counsel)
  • Protect your assets

Bankruptcy is not just for Chrysler and General Motors. It may be for you. Let a competent experienced attorney on Bankruptcy Law Network help you make smart financial choices.

Lakelaw helps people file bankruptcy cases in Wisconsin and Illinois, from Chicago, Skokie, Lake County, Waukegan to Kenosha, Racine and Milwaukee.

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