Het Neoliberale Geloof 452

Bankruptcy filings rise to 6,000 a day as job losses take toll
Updated 14h 11m ago

Consumer and commercial bankruptcy filings are on pace to reach a stunning
1.5 million this year, according to a report from Automated Access to Court
Electronic Records.

While well below the record 2 million filings in 2005, the number of
filings is up sharply from last year's 1.1 million, says Robert Lawless,
professor of law at the University of Illinois.

Bankruptcy filings took a dramatic nose dive after a 2005 bankruptcy reform
measure was signed into law to curb bankruptcy abuse and make it harder to
erase debts.

But filings are surging back in part because of rising job losses. The
unemployment rate could hit 10% this year. And tighter credit, dwindling
401(k) accounts, smaller paychecks and less savings have left unemployed
workers and those who are working but struggling with fewer financial
resources to keep creditors at bay.

Over the past decades, consumers who were hurting financially could rely on
credit cards to help them tread water. "The fact that consumer credit has
tightened and shrunk explains why bankruptcy filings have now gone up so
dramatically," Lawless says.
FIND MORE STORIES IN: General Motors | Chrysler

In May, the number of bankruptcy filings reached 6,020 a day, up from 5,854
in April, AACER says.

More debt-laden consumers are turning to consumer credit counseling
services for assistance. But credit counselors say that it's harder than
ever to help them.

Lees verder:  http://www.usatoday.com/money/economy/2009-06-03-bankruptcy-filings-unemployment_N.htm?csp=34