Do you think you are the only one in the Bankruptcy Boat? Think again!
U.S. consumer bankruptcy filings reached 126,434 in July, the highest amount since the Bankruptcy Code was overhauled by Congress in October 2005, according to data from the National Bankruptcy Research Center (NBKRC). The struggling economy, job loss, and rising financial distress has most assuredly contributed to the rise in filers. Many consumers, struggling with mounting credit card debt, higher mortgage payments, and higher prices are feeling the squeeze on their wallets. This debt burden, coupled with loss of jobs, cuts in hours, and cuts in pay have many Americans feeling the pinch. When debt payments are missed, creditors often seek State Court intervention in trying to recoup monies that are owed. Usually, consumers act quickly by sprinting to the Bankruptcy Court for refuge, typically in an attempt to protect their wages from garnishment. Others, do not always act so quickly and stand to lose 25% of their gross wages that are then deducted from their net pay. As American Bankruptcy Institute Executive Director Samuel J. Gerdano put it, “Today’s bankruptcy filing numbers reflects the sustained and growing financial stress on U.S. households. Rising unemployment on top of high pre-existing debt burdens is a formula for higher bankruptcies through the end of this year.” If you are contemplating filing bankruptcy, it is always better to do it sooner rather than later. Contact the attorneys at Belsky, Weinberg, & Horowitz, LLC, for a fee consultation.