Courts Expect Increased Bankruptcy Filings Despite Bankruptcy Law Change
Credit industry "experts" and consumer bankruptcy attorneys have debated the impact of the October 17, 2005 bankruptcy law change for well over a year now, and are no closer to agreement. But a simple statement from the Administrative Office of the U.S. Courts seems to put the matter in perspective: "As more months go by, filings may increase again because consumers will continue to experience the kinds of financial difficulties that lead them to file for bankruptcy - overspending, loss of employment, loss of health insurance, major illness, and divorce."
That about sums it up; none of the economic factors that forced people into bankruptcy have gone away, and no new solutions are offered by the changes in the law. In fact, the very credit counseling agencies Congress mandated bankruptcy petitioners to work with are determining that most prospective bankruptcy filers have no other realistic options. With all of the same financial problems and no new solutions offered, it seems inevitable that consumers will have no option but to continue to turn to bankruptcy protection.