Bankruptcy Filings Show No Sign of Any Decrease

Written by Adam Peck Category: Nursing Homes January 23rd, 2013 2 min read

The upswing in bankruptcy filings shows no evidence of decreasing after filings rose 32 percent in 2009.

Bankruptcy filings nationally topped 1.47 million last year, up from 1.17 million in 2008, according to the Administrative Office of the U.S. Courts.

The pace accelerated recently, as nationwide filings in March represented the highest monthly total since Congress overhauled bankruptcy laws in 2005. The 149,268 consumer filings in March were up 23 percent over the March 2009 total, according to the American Bankruptcy Institute, an Alexandria, Va., trade organization that does research and education about insolvency.

Consumer bankruptcy filings in February were up 14 percent over the year-earlier period, suggesting that the recession may be over technically, but its financial effects remain.

Lingering high unemployment and mounting debt continue to fuel the rise in insolvency.

“The sustained economic pressures of unemployment coupled with high pre-existing debt burdens are a formula for consumer filings to surpass 1.5 million filings” says California Bankruptcy Attorney Steven C. Peck.

“The obvious culprits are unemployment and the economy,” says Steven C. Peck a Los Angeles Bankruptcy Lawyer. “A lot of these bankruptcies are just old lingering debt.”

Bankruptcy filings could continue to rise because consumers and troubled companies petition a court for protection from creditors frequently as a last resort.

Share it

Questions? Check with Peck Today

Blog Lead Form

Elder Abuse and Neglect in Assisted Living Facilities

Elopement in Nursing Homes

Assisted Living Abuse

Settlement Reached in Assisted Living Facility Death

Assisted Living Abuse and Neglect Attorneys

Written by Adam Peck

Expertise: Personal Injury

Adam J. Peck, ESQ is a principal with Peck Law Group, APC. In 2008, Mr. Adam Peck received his Juris Doctorate from Whittier Law School where he graduated Cum Laude. His practice is primarily dedicated to representing Elders, Dependent Adults, along with their loved ones and family members, who have suffered horrific personal injuries.