Bankruptcies Up 32% in 2009 Despite Tougher Laws
In spite of the tougher bankruptcy laws, 2009 saw a dramatic increase in bankruptcies. Apparently people were in enough financial distress so that the tougher laws did not scare them off. I just wish that the laws would also get much tougher on the credit industry. In this world, it is certainly debtor beware.
In fact every state saw an increase, though some that were hit hardest by the recession endured the highest portion of the 1.4 million US bankruptcies reported last year When interviewed, a common theme among filers was the fact that 3 years ago they never would have predicted they would be in this situation now.
The trend has a lot to do with the financial situation. But it may also be related to the fact that lawyers and consumers are getting more familiar with the new bankruptcy laws. In fact, there was a surge in filings in 2005, right before the tougher laws were enforced. But since then, the number has been climbing back up.
Bankruptcy Relief with Today’s Laws Is the Recession Over – Small Business Owners Answer! Largest US Job Cut in 5 Years Fuels Worries
