Bankruptcy Filings Decline 6 percent but Chicago Bankruptcy Attorneys continue to Assist Record Number of Clients
CNN is reporting that six percent fewer consumer bankruptcy filings were reported in the first quarter of 2011. At first blush, that sounds like good news.
The truth of the matter is that bankruptcy filings are at historically high levels. Chicago bankruptcy attorneys continue to handle record numbers of filings for consumers who are dealing with bad real estate debt, overwhelming credit card debt or astronomical medical bills.
Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 in an effort to reduce the number of bankruptcy filings. Despite the name, this legislation was largely a handout to credit card companies, banks, the medical industry and other big campaign donors. The largest change was the requirement that some with certain income-to-debt levels establish a repayment plan.
To illustrate the impact the economy has had on filings, there were 1.1 million bankruptcies nationwide in 2006 -- last year nearly 1.6 million people filed for bankruptcy protection.
Through March, a total of 340,012 filings were reported, which includes Chapter 7 bankruptcy filings, Chapter 13 filings and filings by farms and corporations.
The stigma once associated with bankruptcy has diminished as consumers seek protection in record numbers. The reality is that bankruptcy can provide tremendous relief and permit a family or filer a new lease on life. Collection calls will stop immediately upon filing. And if they don't, you may have standing to take legal action against them.