While some experts are calling 2010 the year of the economic recovery, bankruptcy filings are in true recession-era form, rising in recent months, and, according many analysts, increasing with no end in sight. In early June, the American Bankruptcy Institute (ABI) validated these fears, reporting that personal bankruptcy filings for the month of May 2010 increased compared with a year ago (May 2009).
According to the ABI findings, in May 2010, 136,142 personal bankruptcy cases were filed, a nine percent increase from May 2009, when 124,838 cases were filed. Based on figures collected so far in 2010, most sources estimate that personal bankruptcy filings this year will total about 1.6 million, a 10 percent increase over the 1.44 million filed in 2009, and taking the numbers to, or above, where they were prior to bankruptcy reforms in 2005.
The reasons behind the bankruptcy bound bursting at the proverbial economic seams—now and in the not-so-distant future—are indicative of a continuing economic crisis that includes:
Foreclosures in Full Swing
Our Great Recession’s mortgage crisis continues to hit close to home, typing families to underwater houses and seemingly endless and adjustable payments. To help these same beleaguered homeowners avoid foreclosure, many have insisted the only solution is to force banks to modify mortgages in ways that are affordable or provide mortgage deferments while recently laid off mortgage holders hone in on new jobs. However with more failed foreclosure prevention programs than you can shake a stick at, the number of homeowners facing foreclosure has steadily increased throughout country’s real estate woes. In turn, many of these same homeowners who are having difficulty making their mortgages may be considering filing for Chapter 7 or 13 bankruptcy protection.
In the heyday of high spending and budgetary booms in the early 2000s, many took out major mortgages and proceeded to make even more personal purchases, leading to more debts being covered by home equity, credit cards and educational loans; and no end to lenders willing to give more to get more. In the wake of the economic meltdown, however, these wells of consumer credit are drying up, leaving many forced to make due, and make up for years of more going out than in. For these folks, bankruptcy provides the right track on the road to healthier spending habits.
A Morose Job Market
In these tough economic times where there are more job reductions than employee raises, many are finding sudden unemployment to be the leading reason to head into the safe harbors of bankruptcy protection. And for the millions unemployed for more than a year, mounting debts paired with dwindling savings and a lack of realistic bankruptcy alternatives, leads many to the doors of the nearest bankruptcy attorney—especially with recent apathy towards extending much-needed unemployment benefits.
So, if you’re one of the millions struggling with unwieldy debt, long-term unemployment, or an unmanageable mortgage, bankruptcy can work for you as it has for so many this year, and last.
Knowing a qualified bankruptcy attorney can also help you to save money, time, and make you more self-sufficient in an uncertain future, yielding the right kinds of support, information and insights—at a low cost— for a viable and secure future beyond our own “Great Recession.” The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-888-234-4181, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.