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Bankruptcies see varied results, while consumers may consider other options
By Peggy Stillwell on Jun 6th, 2010
A recent report indicates the number of bankruptcy filings saw mixed results in May.
The American Bankruptcy Institute, relying on data compiled by the National Bankruptcy Research Center, said filings were up 9 percent when compared to May of 2009. However, the 136,142 petitions made during the fifth month of the year were down 6 percent from what was seen in April.
"While consumer filings dipped slightly from last month, housing debt and other financial burdens weighing on consumers are still a cause for concern," Samuel Gerdano, ABI executive director, said.
Gerdano said the organization expects bankruptcy filings to get beyond 1.6 million this year. This is despite the fact that the federal government approved new guidelines for filing in 2005, which made it more difficult to get Chapter 7 protection.
Consumers who find they may be in danger of bankruptcy may consider other options. Those may include consumer credit counseling, debt consolidation or debt settlement, though the latter may carry with it some risk.
In fact, lawmakers in Illinois passed new regulations regarding debt settlement, which are waiting for the signature of Governor Pat Quinn. The measures were enacted to combat against companies that collect fees without providing any services.
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