The One and a quarter million personal bankruptcy filings in the past twelve months is a 34 percent increase from the year before. The Washington Post reports the figures released Thursday by the Administrative Office of the U.S. Courts.
This year’s bankruptcies are expected to be the highest since 2005 when bankruptcy reform laws seemed to usher in a great number of bankruptcies. The 126,434 consumers that filed for bankruptcy protection in July is the highest month since 2005.
The economy is at the root of many of the bankruptcies, as well as slow job growth and other debt factors. Credit card companies are raising interest rates and banks are no longer so quick to give home equity loans.
Things can come apart so so quickly. One can lose their job, and then soon lose their house and their car. Bankruptcy is often the best option.
