The American Bankruptcy Institute has released data showing bankruptcy filings are nearing record levels.
In 2005, Congress and President Bush overhauled the bankruptcy laws in to favor creditors and make it tougher for consumer to file. Bankruptcy filings topped off at around 2 million consumer filings that year. The bankruptcy law change created a large spike in filings prior to the law taking effect. After the law passed, filings sharply dropped for the next several quarters. Annual bankruptcy filings haven't surpassed 1 million again until last year.
Unemployment continues to rise and we all wonder when things will taper off. The housing market, especially in hard-hit areas such as Phoenix and Las Vegas, continue to fall. The rising level of bankruptcy filings show that people are less hesitant to use the bankruptcy laws to their advantage. Consumers are using the poor economic outlook as an opportunity to get a fresh start before the economy and housing market recovers.
The Dault Law team continues to help individuals and small businesses in Phoenix get back on the path to financial freedom using the bankruptcy code.
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