High Unemployment to Blame for Increase in Bankruptcies

High unemployment rates and depressed home prices are partly to blame for the high amount of bankruptcies filed in 2010. In total there were 1.53 million, up nine percent from 2009. This is based on information released by the National Bankruptcy Research Center and the American Bankruptcy Institute.

These numbers are the highest since the bankruptcy law was revamped in 2005; this change was intended to make it more difficult for consumers to release their debt. This law made it harder for individuals to file for Chapter 7 bankruptcy, which allows them to release their debts, and made Chapter 13 a more likely choice. In this case a repayment plan is developed with the creditors involved.

However, 3/4 of recent filers were still able to qualify for Chapter 7 bankruptcy as they were hit by underwater mortgages and long-term joblessness.

If you are considering filing for bankruptcy this year, contact aSan Antonio bankruptcy attorney now to start working on your finances.