While the recent econonomic upturn has appeared to invigorate American spending, consumer bankruptcy filings have actually increased. In February of 2010, consumer bankruptcy filings were up 14% compared to February of 2009. This in turn represented a 9% increase from bankruptcy filings in January of 2010. According to Samuel Gerdano, American Bankruptcy Institute
executive director, this trend is a result of the overhang from increased debt-stress due to overspending.
New bankruptcy laws enacted in 2005 meant to encourage families to rely on Chapter 13 bankruptcy, which would require consumers with a regular income to slowly repay debt in full or in part over a period of several years, have proven ineffective. Chapter 13 filings are up 3% compared to this time last year.
If you are in need of financial consultation or are considering filing for Chapter 13 or Chapter 7 bankruptcy, contact the
Arizona bankruptcy lawyers
of the Harmon Law Office, LLC, at 480-829-0494.