Bankruptcy Filings Soar To Record

[jeffrey]

With the new bankruptcy law to take effect on Oct. 17, there are a record number of bankruptcy filings taking place as people rush to clear debt. According to data from Lundquist Consulting, there were a total of total of 68,387 bankruptcy filings for the week ending Oct. 1. This was an increase of some 13,326 bankruptcy filings from the previous week which had been a record up to then.

The record number of bankruptcy filings included more than 13,000 filings per day on average which was nearly a 100% increase in the average number of filings per day at the same time in August.




The new bankruptcy law makes it more difficult for people to file under Chapter 7, which allows individuals to clear their debts. The new law makes it more likely that individuals will have to file under Chapter 13, which will require individuals to repay at least some of their debts over a five year period. The new law also requires more documentation from those who are filing which experts say will make filing for bankruptcy more expensive.