Saturday, April 3, 2010

Bankrutpcy Filings Up

In the New York Times it was reported by Duff Wilson on Friday, April 20th, 2010 that there was a "Sharp Increase in Personal Bankruptcies" in March.

They seemed to be surprised. Why?

This is the perfect storm - high unemployment, real estate bubble bursts, banks out for every dime they can squeeze, medical bills soaring - what did they think would happen?


158,000 bankruptcy fillings in March
6,900 a day
35% increase from February 2010

Chapter 7's have increased to 73% from 62% a few years ago, signaling that people are in even worse financial shape than ever. They cant even qualify for Chapter 13 Bankruptcy despite the government's attempts to hurt EVERYONE possible into a 13!

The big problem: Joblessness

Even if people get back to work, they used credit cards to pay for living expenses during their unemployment - credit card debt that history shows they will never be able to pay back. Most cards run interest at 29% plus "fees".

The next wave of bankruptcy is coming soon.

The impact will be greater. "Fewer people are trying to same their homes" said University of Iowa law professor and bankruptcy expert Katherine M. Porter. "They realize their payments are not affordable" and just cannot make the payments.

Regardless of what the public might think, bankruptcy cannot lower the 1st Mortgage Payments.


Paul McLester said...

All of those reasons for the increase plus tax refunds to help pay for the filing.

Jeff Pfeffer, Esq. said...

thanks for the informative update, Scott. We've also been seeing clients from all walks of life. Folks affected by job loss and medical bills, divorce and real estate implosions.

To keep your readers informed I wanted to let you know that I expect to be appearing shortly on radio "voixevangelique" a local Florida radio station run by social and religious organizations in our vibrant Haitian community. We will be discussing many topics you've raised and will be accepting call-in questions to help folks in that community facing severe financial and legal issues. Your readers can visit for information or contact me thru our website located at www.PfefferLegal.Com.

Keep up the good work.

Jeff Pfeffer, Esq.
Pfeffer Attorneys & Advisors

Scott Forgey said...

Great Jeff. Start a facebook page for the event.