Personal bankruptcy figures for 2008 are approaching 1,000,000 according to statistics from the Administrative Office of the US Courts. The ongoing economic turmoil and collapse of the mortgage markets continue to pressurize household finances.
Chicago (PRWEB) November 20, 2008 -- Personal bankruptcy filings are now approaching 1,000,000 as the "credit crunch" and deteriorating economic condition send shockwaves through household finances across the United States. Legal Helpers, the nation's largest personal bankruptcy law firm, states year to date figures of personal bankruptcy filings nationwide has risen to 931,873. This frenzy of filings is now occurring some three years after Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act.
The Bankruptcy Abuse Prevention and Consumer Protection Act, was designed to reduce the number of personal bankruptcy filings, came into force in 2005 amidst a rising prevalence of Chapter 7 voluntary petitions. This act introduced a compulsory means tested element to the Chapter 7 filing process.
However, after an initial decline in the frequency of personal bankruptcy, the figures for Chapter 7 and the less popular Chapter 13 procedures in 2008 have risen 28% on the year, as the impact of the mortgage meltdown and turmoil in the housing market take their toll.
Richard K. Gustafson of the Law Offices of Macey & Aleman believes the input of experienced legal personnel in handling Chapter 7 and Chapter 13 filings has become more imperative than ever, given the complexities of filing introduced by the Act and the growing financial pressures on average homeowners.
"Chapter 7 and Chapter 13 filings are an unavoidable fact of life, particularly given the current economic climate. Individual households nationwide are struggling to make ends meet as food and fuel prices skyrocket, and their heavy, expensive mortgages come home to roost."
According to Richard K. Gustafson, "The 2005 Act has done very little in practicality to protect those financially vulnerable consumers choosing bankruptcy as a last resort, and if anything has introduced more complexity and red tape to the filing process. Now, more than ever, the services of reliable, experienced personal insolvency practitioners are imperative to the filing process and to maintaining the dignity of those falling victim of the current economic conditions."
An unstable economy built on the foundations of a troubled housing market has resulted in ordinary families feeling the pinch. Coupled with rising food and energy prices, swathing financial uncertainty and global economic panic, the financial burden for many ordinary homeowners has become increasingly intense.
Professor Jack Williams of the American Banking Institute believes the problem will get worse before it gets better in spite of the provisions of the 2005 Act, anticipating an even greater rise in personal bankruptcy filings before the year is out.
"The people who thought they could reduce the number of filings have failed…I expect bankruptcies in 2008 to exceed 1.2 million filings," said Professor Jack Williams.
About:
The Law Offices of Macey & Aleman is a top tier consumer bankruptcy firm, specializing in Chapter 7 and Chapter 13 filings. Founded in 1994, Macey & Aleman (operating as Legal Helpers in some states) employs over sixty bankruptcy attorneys nationwide, and enjoys a reputation for excellence in private bankruptcy filings.
Contact:
Richard K. Gustafson, II - Partner
Legal Helpers
The Law Offices of Macey & Aleman
Sears Tower
233 S. Wacker Drive, Ste. 5150
Chicago, IL 60606
Ph: 312-467-0004
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