By Chris KramerDecember 01, 2010
Personal bankruptcies in Maine are expected to hit a five-year high after already climbing to 3,500 this year so far. Common reasons for filing include medical expenses, divorce, underemployment and job loss, according to the Maine Public Broadcasting Network.
One couple mentioned by the news source filed personal bankruptcy after falling behind on home equity and credit card payments. Such filings are reportedly common in Maine, according to one bankruptcy attorney.
"They're trying to get loan modifications and they've run through a lot of those programs and are coming out of the other side where they don't qualify," the attorney said of bankruptcy filers.
He also added that personal bankruptcy may create problems for the creditor as well as the debtor. Nevertheless, he believes personal bankruptcy is a better option than what some debtors do instead - stop using their phone and bank account, and get jobs that are paid in cash to avoid generating a paper trail.
Another bankruptcy attorney claims that loan delinquency and bankruptcy among Maine families is rarely caused by extravagant expenditures.
"If it's a choice between feeding family and educating kids and paying MasterCard, I'd not pay Master Card every time," he said.