Due to high unemployment and an uncertain economic climate, consumer bankruptcy filings in America have increased in 2010.
According to statistics reported by the American Bankruptcy Institute, a total of 137,698 Chapter 13 bankruptcy and Chapter 7 bankruptcy cases were filed in the month of July 2010. This represents a 9% increase over July 2009. It is expected that more than 1.6 million bankruptcy cases will be filed in 2010, and bankruptcy filings may continue to rise in 2011.
What do these statistics mean? Well for one thing, it appears the economic recovery has a long way to go. In many bankruptcy cases, clients decide to walk away from their mortgage obligations. This increases the inventory of available houses and exacerbates an already depressed real estate market.
Why is this important? In past recoveries, the real estate market and consumer spending lead the way to recovery. These market forces are not present in today’s economy. The National Association of Realtors reported that home sales were down by $25.5% in July 2010. The latest statistics from the Federal Reserve indicate that consumers reduced their credit card debt by $4.5 billion in June 2010. There were 21 months of declining consumer credit card debt from September 2008 through June 2010. Current credit card debt totals are the lowest since 2005.
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Why am I writing about this? I want to encourage you to be wise with the resources you have and, call the law offices of Roger Ghai, P.C. at (770) 792-1000 if you find yourself in a difficult financial situation that you cannot resolve on your own. We are a debt relief agency and we help people file for bankruptcy under the bankruptcy codes.
For more information about this article visit www.chapter7attorneys.com or email Roger Ghai at roger@chapter7attorneys.com. © 2010 Law Offices of Roger Ghai, P.C.
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