Despite Changes in New Law, Evidence Shows Consumers Still Filing for Bankruptcy; In the Face of Higher Interest Rates, Minimum Credit Card Payments and Energy Costs, Consumers Can File for Bankruptcy Protection under New Law.
WASHINGTON -- The National Association of Legal Document Preparers, Inc. (NALDP) today said that despite changes in the bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most law, evidence is showing that economic conditions are forcing consumers into Chapter 7 bankruptcy.
The largest credit counseling Credit counseling (known in the United Kingdom as debt counselling) is a process offering education to consumers about how to avoid incurring debts that cannot be repaid. This process is actually more debt counseling than a function of credit education. organization in America, Money Management International, reported that in the 13 weeks after the new law took effect Oct. 17, a mere 4.5 percent of the 14,907 debtors counseled by MMI (Man Machine Interface) See HMI.
1. MMI - Man-Machine Interface.
2. (company) MMI - The company which developed the first Programmable Array Logic devices. MMI was bought by AMD. had enough income to enter into a repayment plan(1). Ninety-five percent of those going in for credit counseling are coming out and filing for bankruptcy protection. Anecdotal evidence anecdotal evidence,
n information obtained from personal accounts, examples, and observations. Usually not considered scientifically valid but may indicate areas for further investigation and research. gathered from legal document preparers across the nation, mirror those statistics.
"The evidence is clear that Chapter 7 Bankruptcy is the only option for most consumers to get a new financial start," said Lizanne Sadlier, Director of NALDP. "They are beyond the point of being able to afford a re-payment plan. You can't alter basic human economics."
"In 2006, family budgets are expected to be hit from a variety of angles," said Sadlier. "Credit card companies are now required to raise minimum monthly credit card payments to almost double what they were; higher interest rates have already taken their toll; parts of the country are bracing bracing,
n a resistance to the horizontal components of masticatory force. for record high heating and energy bills; and gas prices are creeping creeping
1. gradual progression of a lesion or tissue growth.
2. prostrate growth pattern of a plant, e.g. c. buttercup (Ranunculus repens), c. caustic (Euphorbia drummondii), c. charlie (Glechoma hederacea), c. up to post-Katrina levels."
Sadlier added, "We want to let families, who are feeling unsure about their financial future, know that legal document preparers can help them get their footing to begin the rebuilding process."
Bankruptcy filings fell to a weekly rate of about 3,500 compared to 315,000 just before the new law took effect on Oct. 17, but the numbers have increased to about 5,000 per week and are expected to climb.
"As holiday spending catches up and heating bills continue to spike A burst of extra voltage in a power line that lasts only a few nanoseconds. See power surge, power swell, sag and surge suppression.
(jargon) spike - To defeat a selection mechanism by introducing a (sometimes temporary) device that forces a specific result. , we are likely to see more and more Americans enter a difficult financial period," said Sadlier. "We want to reassure re·as·sure
tr.v. re·as·sured, re·as·sur·ing, re·as·sures
1. To restore confidence to.
2. To assure again.
3. To reinsure. those who are uncertain that they still have the ability to file under Chapter 7 protection."
Sadlier said, "Legal document preparers across the country are available as an inexpensive and valuable alternative to lawyers to help consumers navigate (1) "Surfing the Web." To move from page to page on the Web.
(2) To move through the menu structure in a software application. the new law."
Interested consumers are invited to download NALDP's first publication, How to Prepare and File Chapter 7 Bankruptcy, as a first step to filing. The booklet is available for a small fee at http://www.naldp.org. A complete list of federally approved credit counseling agencies is also available at http://www.naldp.org.
National Association of Legal Document Preparers, Inc., based in Washington, D.C., is a non-profit organization A non-profit organization (abbreviated "NPO", also "non-profit" or "not-for-profit") is a legally constituted organization whose primary objective is to support or to actively engage in activities of public or private interest without any commercial or monetary profit purposes. formed to give a voice and a national forum to the growing number of legal document preparers, legal technicians, online legal document providers and independent paralegals across the country. We are a grassroots network dedicated to the principle that all citizens have a constitutional right to represent themselves; and, in exercising that right, they have affordable access to efficient, effective and ethical legal document preparation services. In addition to those professionals working directly with legal documents, our membership includes public policy, education and consumer advocacy professionals who share a commitment to the principles of NALDP. More information is available at http://www.naldp.org.
(1) Source: "Bankruptcy Counseling Law Doesn't Deter Filings" Washington Post, 1/17/06