In a sign of a worsening financial climate, personal bankruptcy filings have reached almost 7,000 per day, according to an article in The NY Times. With some projections of as many as 1.5 million or more this year, the numbers remain well below the record of 2 million set in 2005. But that year’s high was prompted by filers trying to beat the deadline for the proposed changes in bankruptcy law which were to make filing much more difficult. The rising numbers reflect both the depth of this recession, continuing high unemployment and a growing number of consumers seeking protection from lenders pursuing deficiency judgments.
The recession that just won’t go away continues to create financial chaos and uncertainty in all area of the economy; and homeowners struggling under burdensome debt loads are seeking bankruptcy protection in numbers that are approaching their former highs. And while it’s difficult to determine the exact number, many may be using the courts to rid themselves of debts which surface following a foreclosure or short sale. An article in the Chicago Tribune points out how some homeowners see bankruptcy as the best means of protecting their financial futures.
With banks drowning in real estate and suffering huge losses, some have become aggressive in pursuing mortgage holders for their losses, a growing problem I described in an ARTICLE posted last year. Other lenders have chosen to sell packages of such debt to collection agencies, a practice that may extend the process for several years, sometimes not surfacing until borrowers have long since assumed their ordeal to be history. Additionally, lenders holding second liens are at the end of the financial pipeline, and often receive little or nothing from the sale. Those with notes of significant dollar value are more likely to pursue a borrower.
With millions of homeowners owing more than their home is worth, and the prospects dim for loan modification, increasing numbers are seeking protections under Chapter 7 of the bankruptcy code, a process that wipes out the debt. And increasing numbers of those wishing to get on with their lives and begin restoring their financial health are seeking the courts help in doing so. If you are in the need of a Bankruptcy Attorney in Kane County, contact your Kane County Bankruptcy Attorney.
http://beforeitsnews.com/news/87/050/Personal_Bankruptcies_Rise_To_Combat_Deficiency_Judgments.html
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