Bankruptcy

One American is filing bankruptcy every 15 seconds

By David Leibowitz, Illinois and Wisconsin Bankruptcy

For the fiscal year 2010 ending June 30, 2010, over 1.5 million bankruptcy cases were filed in the United States.  For the American people, that is a remarkable rate of one case every 20 seconds.  Since many of these bankruptcy filings in the United States involved married couples, it’s obvious that well over 2 million Americans filed bankruptcy in the past fiscal year. Nationally this represents a 20% increase over the already high levels in 2009.  In Arizona, the increase was an astounding 52%. The Central District of California (Los Angeles) wasn’t far behind with an incredible increase of 48.2%

Taking into account that many cases involve two people, we can conservatively state that one American is filing bankruptcy every 15 seconds!!

Why is this happening?

• The economy stinks – manufacturing and even service jobs have gone offshore
• High unemployment rates ? still close to 10%
• More foreclosures have been filed nationwide than ever
• Collection of credit card and medical debt is more aggressive than ever ? predatory collection firms sue and garnish wages mercilessly.

Remember, creditors have rights but debtors have remedies.  Bankruptcy is the most important remedy which you have as a debtor facing economic hardship. In particular, chapter 13 to save your home can still be very effective. Bankruptcy is not shameful. It is your right.  It?s built into our United States Constitution, which these days is a matter of paramount concern to many people.  Check it out in Article 1 Section 8 Clause 4.

And Congress has granted people the right to file bankruptcy pursuant to its constitutional authority to do so.

Full post as published by Bankruptcy Law Network on September 12, 2010 (boomark / email).