The number of bankruptcies is rising due to the recession.
Wired PR News – The number of bankruptcy filings for businesses and individuals in the U.S. is said to be on the rise, despite a fairly recent law designed to limit their numbers. As reported by the Associated Press (AP), an estimated 1.2 million debtors initiated bankruptcy filings within the past year, with almost 131,000 seeking the financial protection last month.
North Carolina bankruptcy attorney Bryan Elliot, is quoted in the AP report as stating of his increase in clients, “There’s no end in sight… To be doing this well and having this much business, it is depressing. It’s not a laugh-a-minute job.”
In 2005, a law was passed that placed stricter requirements on bankruptcy filing that contributed to a drastic decline in filings, from 2 million to 600,000. UCLA law professor Lynn LoPucki is quoted as stating of the recent changes, “You wouldn’t get this large of a rise without serious problems in the economy.”
Photo Credit: Andrew Dunn, 29 July 2005.