Bankruptcy Numbers Slowing Increasing After Law Changes
by admin, November 22nd, 2006 | No Comments
It`s been a little more than a year since Congress changed the federal bankruptcy code, to make it more difficult to file for the type of bankruptcy that eliminates debt all togther, and reduce abuse of the system.
Local attorneys are still learning how manuever through the rewritten bankruptcy laws. And overall filings are down for the year.
But bankruptcy attorneys say that may have more to do with people believing they no longer can file.
Now that people are learning more how the new system works, the number of filings is back on the rise.
The new codes encourage people to file for Chapter 13, or the type that sets up a repayment plan for debt, instead of erasing it.
Springfield bankruptcy attorney Angela Acree says most of her clients who were eligible to absolve all their debts before the law changed, are still eligible for payment reorganization.
“A lot of misconception is that people are out there just kind of using their credit cards to go on trips and buy a fancy present and stuff like that, but if you really look at the statistics it will show that people using credit cards are supplementing their lives by buying groceries… putting… getting gasoline.”
Part of the new law also requires people to get credit counseling after they file. But Acree encourages people seek credit counseling before personal finances are ruined.
And Acree says the holiday season in particular can be a slippery slope for people who rely on credit cards.
“The whole idea of that is for us to find an alternative for them to filing bankruptcy,” says Mike Cherry with Consumer Credit Counseling.
Even with healthy spending habits, holiday cheer can make even the most responsible spend too much. “This time of year especially, we see people kind of expanding their horizons, in what they think they can buy and afford.”
Cherry recommends you find inexpensive ways to show your affection and appreciation for others over the holidays, and avoid deepening your debt.
“The holidays are not necessarily measured by how much money they spend, it`s, you know, it`s what`s in your heart.” Mike Cherry
Tags: Insolvency Debt, Debt Consolidation Services, debt management, debt, Debt Consolidation, insolvency, debt consolidation services [/tags], [tags] Bankruptcy
