Bankruptcies again on the rise.
Opponents of the bill proved prescient. After a sharp increase in the number of bankruptcy filings leading up to Oct. 17, 2005 (the date the law took effect), followed by a dramatic dropoff immediately following this deadline, filing rates have continued to climb--and, if statistics since enactment of BAPCPA are any guide, including numbers released by the courts, this upward trend will not abate.
The numbers are stark: By the end of the fourth quarter of 2007, the national Chapter 7 bankruptcy rate had reached 1.7 filings per 1,000 people, which is a 95.8% increase from the 0.9 filings per 1,000 people at the end of the first quarter of 2006, the first complete quarter after BAPCPA took effect. Similarly, the national Chapter 13 bankruptcy rate stood at 1.1 filings per 1,000 people in the fourth quarter of 2007, a 62.2% increase from 0.7 filings per 1,000 people in the first quarter of 2006.
Chapter 7 is known as "liquidation" or "straight" bankruptcy and used primarily by individuals who want to free themselves totally of debt. Businesses also utilize it to liquidate and terminate their company. Chapter 13 is employed by a person with a regular income who is overcome by debts, but believes they can be repaid in full or part within a reasonable period of time.
|Printer friendly Cite/link Email Feedback|
|Title Annotation:||Your Life|
|Publication:||USA Today (Magazine)|
|Article Type:||Brief article|
|Date:||May 1, 2008|
|Previous Article:||Tuesday ranks as most productive day.|
|Next Article:||Children at risk from chained dogs.|