Bankruptcy Filings Expected to Increase as Economy Slides

Although changes in the Bankruptcy Code in October 2005 made filing for bankruptcy more complex and expensive, it's anticipated that individual bankruptcies will increase nationwide significantly as the economy continues it's downward turn. According to this article, "National statistics indicate the trend is well under way, with bankruptcy filings by individuals up 27 percent nationwide in the first quarter of 2008 compared to the year-ago period, according to new figures from the American Bankruptcy Institute, a research and education group.Individuals' bankruptcies nationwide rose 40 percent in the 2007 calendar year compared to 2006. The ABI, which bases its figures on data from the National Bankruptcy Research Center, said the increase is due to rising household debt and growing mortgage problems. "