debtconsolidationconnection.com
501 (c)(3) non-profit Organization
Free Consultation
More people may have visited consumer credit counseling services as bankruptcy increases
By Peggy Stillwell on Apr 2nd, 2010
Recent statistics show that bankruptcy is still being chosen by a number of people as problems with debt mount.
According to Automated Access to Court Electronic Records, bankruptcy filings in March were at the highest levels seen since the federal government passed new regulations in the fall of 2005. The number of filings in March increased 35 percent when compared to February.
In all, more than 150,000 bankruptcy filings were reported in March, the AACER report said.
The revision to bankruptcy law passed at the federal level in 2005 made it more difficult for consumers to file for Chapter 7 protection. Instead, people may have to file for Chapter 13, which requires setting up a five-year debt-repayment plan.
In order to determine what type of bankruptcy a person can file for, a means test is used. If consumers still have $100 left over after paying certain expenses, then they cannot file for Chapter 7.
People who do want to file for bankruptcy must first prove that they have consulted with a consumer credit counseling service. Consumers who are having problems with debt in general may also consider visiting these organizations, as they can help provide financial advice.
More Consumer Credit Counseling News
