Bankruptcy Filings Surged in 2007 And Will Continue in 2008 by Bankruptcy Attorney Carmen Dellutri
This post is published by Carmen Dellutri, Esq. Board Certified Consumer Bankruptcy Attorney.
You may recall that bankruptcy filings surged in 2005 prior to the bankruptcy laws being changed. As expected, 2006 was a relatively slow year in the bankruptcy world when it came to new filings; however, each and every bankruptcy attorney truly committed to his or her practice knew what was going to happen in the future.
Bankruptcy filings were going to increase because of the increase in consumer debt and the frivolous nature in which it was given away. Well, the amount of consumer debt has a consumer direct correlation with the number of consumer bankruptcy cases filed. At the end of 2007, 801,840 personal bankruptcy cases were filed, Similarly, at the end of 2006, only 573,203 consumer cases were filed. These statistics came from the American Bankruptcy Institute, www.abiworld.org and the National Bankruptcy Research Center, www.nbkrc.com.
2008 is not going to be a good year for the consumer. This prediction is being heard from many consumer advocacy groups as well as from the business world. Higher levels of consumer debt, the mortgage crisis, and lower consumer confidence all contribute to the problem.
