Wednesday, August 18, 2010

Bankruptcies Way Up And Will Continue

U.S. bankruptcy filings have reached the highest level since 2005, government data released on Tuesday show, as the economy slows and the unemployment rate hovers just below double digits.
There were 422,061 bankruptcy filings between April and June, according to the Administrative Office of the U.S. Courts, up 9 percent from 388,148 in the prior three-month period, and up 11 percent from 381,073 a year earlier.
For the year ended June 30, there were 1.57 million bankruptcies, up 20 percent from 1.31 million a year earlier.
Consumer bankruptcies rose 21 percent to 1.51 million, and business bankruptcies rose 9 percent to 59,608.
Quarterly filings surpassed 400,000 for the first time since a record 667,431 bankruptcies were begun in the fourth quarter of 2005, when Congress overhauled federal bankruptcy laws and made it harder for people and businesses to file. 
"We know the causes of bankruptcy are principally job losses and health care, with the overlay of the foreclosure crisis," said Deborah Thorne, an associate professor of sociology at Ohio University. "It feels very unsettled, and I'm not surprised the numbers are going up. Until we get our feet on the ground, provide decent-paying jobs, and do something with the housing crisis, bankruptcies will continue to go up." 


  1. hmmmm so wonder how many of these people walking away from their loans and filling bankruptcy are walking away with that bag of gold they were told to buy.

  2. 8:51, Good comment. I personally know a person doing just that.

  3. The problem is that if "We know the causes of bankruptcy are principally job losses" and those jobs are not coming back to the United States and even more jobs are leaving the USA then how on Earth is there going to be a recovery?

    The answer is that there will be NO RECOVERY

    and eventually even those who have jobs will be affected by increasing prices and taxes.

  4. 9:24 Logical question. Wrong answer.

    Try again.

    Hint: Group one will be a bunch that stands in parking lots crying for something, anything to feed their appetites and habits. Group two will prowl around looking for anything their can break or take. Group three will pull their pants up, wipe their noses and find work, anything, even pulling a plow, because that is what people with good sense do.

    Groups one and two will get their herds thinned out pretty quick. Group three will get thinks back in order soon enough and when they get the ball rolling again, do yourself a favor, don't get in the way.

  5. 11:20 You think you are so smart. How would you like it if I said maybe your herd should be thinned? Sure, lot's of people are lazy, addicted thieves but the poeple on this site seem to be mainly hard working people looking for answers. Your probelm is you are mean and think you have all the answers and I think you just need to climb down off that high horse a minue and you will see that you are no taller than anyone else.

  6. Anyone with knowledge and common sense regarding America today would agree with the above post. I have suffered bankruptcy and I know many others who have as well, responsible hard working people who have worked very hard for 30 years. Bankruptcy has been abused, no doubt, but I don't believe thats the case for most people in America today.

  7. I just went bankrupt so not talking out of my ass...Great credit till finally my spending and life circumstances caught up...I have no excuse for some of what happened IE bad loans/cosigning/DUI/stupid purchases.

    However I always dredged on to the point I had less than 10% after everyone was paid every month...Just found out I was losing 15% in wages and next year my taxes as a single man with no kids kicked my federal taxes to about the 21% tax bracket.

    So I tried to deal with them...After all being a great customer with only 1 late payment in 9 years should stand for something right? (Lost the statement and forgot about it)...Paying hundreds over my minumum should count right?...Nope.

    So Chap 13 I went and you know what?...I feel ok...A lil guilty but like a huge gorilla is off my back...If they had worked with me I would have paid them off and they still could have made a tidy 5%-7% rate of profit off me...But looking at my credit history they figured I'd continue paying till I had no blood to give.

    Sometimes I read the people who refuse to let their home go after medical or job issues...They use up all their savings...Beg and borrow till they have nothing for when they finally have to walk away.

    Stock up, get a car that will last you 5 years problem free and DOWNSIZE NOW...Don't wait and procastinate...I borrowed some time but either way we're all in the same boat...Some people are better prepared but in the end no man/woman is an island.

    I do agree that there are plenty of scammers and most of the wounds are self inflicted but if they are lending $ at 10% when they lent it to me and it cost them $0.00 why couldn't they work with me?

    I could have gone another 6 months but why?...The end result was they either bend a lil or I break by February of 2011.

    It's like they're pushing people to default rather then make a lil less profit...Bad business plan

  8. We will cure the disease in the white house and then we will get our butts busy and rebuild this country. There will be some disastrous economic comings thanks to the great spenders, but eventually we will rebuild and do it better than any other country because that's who we are. First things first - we have to kick the communism into outer space. Remember in November.

  9. And we need to stop sending jobs to India and start bringing those jobs back to the USA.

  10. 3:40 PM you need to stop listening to right wing propaganda, Fox News, Rush, and the gang! You make no sense!

  11. Sorry 3:40 PM, your correct!

    3:07 PM You need to stop listening to right wing propaganda, Fox News, Rush, and the gang! You make no sense!


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