Despite the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) that went into effect on October 17, 2005, the number of consumers and businesses filing bankruptcy is on the rise.
BAPCPA increased the fee to file bankruptcy and placed tighter limits on the income of those who are filing bankruptcy, but aside from a brief decrease in bankruptcy filings at the end of 2005, has done nothing to slow down the number of people and businesses who find that filing bankruptcy is their best option.
According to data from the National Bankruptcy Research Center, U.S. consumer and business bankruptcy filings were up by 30.9 percent nationwide in May as compared to the same time period a year ago.
The overall number of people filing bankruptcy is still lower than in 2006 when 1.8 million people filed bankruptcy, but with the nation's poor economy and the sharp rise in food and gas prices record numbers of consumers and businesses may soon be considering filing bankruptcy.
Tags: bankruptcy filings, filing bankruptcy
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