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Bankruptcies rise, while some may consider debt management plan as an alternative
By Peggy Stillwell on Jul 7th, 2010
Some consumers are still having a rather hard time dealing with their credit card debt and other loans, according to a recent report from the American Bankruptcy Institute.
The ABI, relying on statistics from the National Bankruptcy Research Center, reported that during the first six months of 2010 filings were up 14 percent when compared to the same time in 2009. In all, 770,117 bankruptcies were recorded from January to June of this year.
"We expect that there will be more than 1.6 million new bankruptcy filings by year end," said Samuel Gerdano, ABI executive director.
The total number of bankruptcies during the first six months represents the highest amount since 2005, when an act was passed making it more difficult to file. The new rules required that consumers pass a means test before determining for which chapter they can file.
Bankruptcy can have a tremendous affect on a person's credit score, making it more difficult to secure a loan in the future. People may consider other options before filing, including a debt management plan.
With one, consumers may find they can get lower interest rates, making loans easier to pay off.
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