Bankruptcies on the Rise…
By Heather Faucher | Posted on July 22, 2009 | Filed Under Bankruptcy
Both consumer and commercial bankruptcy filings are racing upward again and are expected to reach a stunning 1.5 million this year, according to a report from Automated Access to Court Electronic Records (AACER). While that number may still be below the record of 2 million filings hit in 2005, it’s still a sharp increase over last year’s 1.1 million filings.
A serious bankruptcy reform measure was signed into law in 2005, which seemed to stem the tide of bankruptcy filings over the next year. The law was intended to curb bankruptcy abuse and make it harder for people to simply erase their debts. The plummeting economy is swinging the bankruptcy pendulum back up, however. Rising job losses, tighter credit, dwindling 401(k) accounts, and dwindling paychecks means consumers are struggling even more than ever to make ends meet and keep creditors at bay.
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Tags: Bankruptcy, bankruptcy reform, economy, filing bankruptcy
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