BANKRUPTCY ASSISTANCE

Bankruptcy Data Shows Consumer Debt is Still a Problem

The new bankruptcy laws were supposed to help lower bankruptcy rates and bring bankruptcy data to a lower level.  In the time since the new laws went into effect, though, the bankruptcy data has shown a climb in filings instead of a decline overall.

The Trends

The trends shown in bankruptcy data show that from 1999 to 2000 the bankruptcy rates did fall, however, they saw a quick jump back up again.  The filings for 1999 were at 1,319,465 and in 2000 they were at 1,253,444.  In 2001 the rates jumped to 1,492,129 and have continued to go up steadily every year until the new laws went into effect in 2005 when the rates were at an all time high just before the passing of the new laws at 2,078,415.  The rates went down in 2006 and 2007 at 590,676 and 826,914, respectively. 

This drop in filings, though, was short lived and the expected bankruptcy filing rate for 2008 is estimated to be between 1,049,000 - 1,080,000. 

What is the Reason

The increase in bankruptcy filings shown in the data for 2008 is likely due to the fact that the economy is in deep trouble.  The harsher bankruptcy laws are not stopping people because they are in serious financial trouble.  These new laws were to stop frivolous bankruptcy filings and with the economy in a state as bad as it is now, people no longer just want to file bankruptcy they have to file.

What the Future Holds

Bankruptcy data does not look too hopefully for the future.  If the economy continues on this downward spiral then the bankruptcy data will reflect that with more filings every year.  The only hope is a rebound in the economy and that is a far off thing no matter what.

Filing bankruptcy is seen as a last resort.  It comes with many consequences and hardships.  However, with so many people losing their homes and having trouble even affording to put gas in their vehicles, filing bankruptcy is often the only answer.  As the average American continues to struggle the need for filing bankruptcy becomes the only option. 

Bankruptcy data is sure to reflect the hardships of the average American because it is usually the average or middle class working person who is filing bankruptcy.  Additionally, even businesses are seeing hard times right now and there has been an increase in business bankruptcy filings as well.

The future does not look too bright if something doesn't change.  Bankruptcy data is a true way to see just how much trouble the average American is having making ends meet.