Last year overall consumer bankruptcy filing topped 1,064,927, according to the National Bankruptcy Research Center. This number is up 33 percent from 2007, when 801,840 people filed.
Numbers are expected to continue to climb this year as the recession weighs on consumer’s wallets and more people turn to filing bankruptcy.
“Consumers are under great financial stress, with no immediate end in sight,” said Samuel Gerdano, American Bankruptcy Institute’s executive director, in a news release. “We expect the upward spike in personal bankruptcies to continue in 2009.”
Mass layoffs and business bankruptcies haven’t helped the matter. With hundreds of thousands of people losing their income every month, Chapter 7 bankruptcy has become an appealing option for many.
And, as people struggle to keep up with daily living expenses and mounting debt, some have turned to filing Chapter 13 bankruptcy to stop foreclosure/repossession proceedings and to get set on a debt-repayment plan.
Stay tuned to Total Bankruptcy for economic news that matters to the people.
Tags: chapter 13 bankruptcy, chapter 7 bankruptcy, consumer bankruptcies
Posted in Economic News: How Are We Doing? | 1 Comment »