MA Bankruptcy Attorney: Will 2010 Bankruptcy Filings Actually Hit 2,000,000? An Analysis
March 13, 2010
In 2004 to 2005, word spread that a new bankruptcy law would soon go into effect. The fear was that many, if not most, people would be prevented from filing Chapter 7 and getting a full discharge of debts. Because of this fear, the filings just prior to the BAPCPA law coming into effect hit over 2,000,000 for the year 2005!
2006 saw a much lower number, as many of those who had been considering bankruptcy for a few years decided to file before the new law came into effect. 2006 filings? A relatively low 573,151.
2007: Word was spreading that the revised bankruptcy law still allowed many middle to lower income people the help they needed and the number of filings again went up. 2007? 801,880.
2008: The U.S. slips into recession mode and unemployment is climbing. While many ran up credit cards in the mid-2000′s, they were now no longer able to make the minimum payments. Interest rates and late fees on those cards only added to the problem. 2008 filings? 1,060,061.
2009: 10% unemployment and no signs of job creation lead to an economic meltdown for millions of middle income families across the country. 2009 filings? 1,406,125.
Will we see total filings for 2010 hit TWO MILLION? It seems possible given the (still) high unemployment rate and lack of significant job creation.
Kara O’Donnell, Esq.
O’DONNELL LAW OFFICES (857)526-1355
Posted by Kara O’Donnell