Despite the recent economic upturn, consumer bankruptcy filings have not slowed. In February, bankruptcy filings were up 14% compared to the previous year. The number of bankruptcy filings in February increased by a total of 9% from January’s, indicating a uncomfortable trend.
Increased debt-stress from years of overspending is catching up with individual consumers, causing this increase in Chapter 7 bankruptcy filings, according to Samuel Gerdano, American Bankruptcy Institute executive director.
While the stricter bankruptcy laws implemented in 2005 were meant to cause more families to rely on Chapter 13 bankruptcy, which would require those with a regular income to repay debt in full or in part over several years, the number of the Chapter 13 filings has actually decreased 3% compared to this time last year.
If you are suffering financial difficulties and need consultation in regards to filing for Chapter 13 or Chapter 7 bankruptcy, contact Birmingham bankruptcy lawyer Paula Greenway at (205) 324-4000.