January 4,2007
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The 2007 Bankruptcy Blitz?
Experts are concerned that bankruptcy filings could hit an all-time high in 2007. The combination of climbing interest rates and plummeting home values is a lethal combination on consumer debt, and bankruptcies attorneys reported a "significant" increase in filings in the third and fourth quarters of 2006.
The bad news for consumers stranded on a dead-end debt road is that it is harder than ever to file for bankruptcy. New legislation has resulted in more voluminous paperwork and higher fees. Additionally, reports indicate that it takes an average of 50% longer to prepare the filing. Proponents of tougher bankruptcy procedure seemed to think that the end result would be more forced Chapter 13 repayment incidences, but that doesn't seem to be the case – just more irritated and frustrated consumers.