66 Percent Increase in U.S. Bankruptcy Filings Linked to Housing Market Slump & Increasing Household Debt
Bankruptcy filings in the United States increased by 66 percent during the first quarter of 2007. An Associated Press story detailed government data showing that there were approximately 193,641 bankruptcy filings in the U.S. from New Year's Day through March 31st of this year. Personal bankruptcy cases rose by 66 percent to 187,361 while business bankruptcy filings were up 54 percent to 6,280 in the first quarter.
Sam Gerdano, executive director of the American Bankruptcy Institute, estimated in the story that bankruptcy filings in 2007 will remain nearly 50 percent higher due to the rising numbers of foreclosures, mortgages in default and overall housing debt in the country. Gerdano's prediction that more people with turn to bankruptcy as a means for a fresh financial start comes on the heels of recent lobbying by consumer groups calling for Congress to make it easier for people facing foreclosure to file bankruptcy and keep their homes.
If you're facing foreclosure and wondering if filing bankruptcy may help you keep your home, call 877-349-1309, and we'll help you get in contact with a local sponsoring bankruptcy attorney who can begin to assess your current financial situation.
This entry was posted on Thursday, June 28th, 2007 at 9:25 am and is filed under Post-Bankruptcy Debtor Education. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.
I had a chapter 7 bankruptcy discharged in 2005 and went to open a bank account today, they denied me stating “Unpaid Bankruptcy — do not open account”. I thought Chapter 7 was where the debt was free and clear once the case was discharged? Please advise