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Consumer credit counseling may provide alternatives as bankruptcy rates increase
01/07/2010
Some consumers may have such trouble trying to pay off debt that they resort to bankruptcy, and recent numbers indicate the trend is increasing.
The National Bankruptcy Research Center released findings that show that the number of bankruptcy filings increased 32 percent during the first 11 months of 2009 when compared to the same time period in 2008. In all, more than 1.3 million filings have been accounted for in 2009 by the center's research.
On a year-to-date scale, 2009 saw the highest number of bankruptcy filings since new laws changed the practice in 2005. November 2009 alone saw a 12 percent increase compared to the same month in the previous year.
According to the NBRC, many of the states facing foreclosure problems also saw high increases in the number of bankruptcies. For example, Arizona saw an 80 percent increase, while Nevada came in at 60 percent.
Though people may consider bankruptcy in order to deal with debt, they should also keep in mind that it could put a serious dent in their credit score. Before they file, consumers may consider visiting a consumer credit counseling agency, which may be able to find alternatives.
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