Bankruptcy INK

The amount of Chapter 7 and Chapter 13 bankruptcies continue to rise. It is projected that the amount of filings in 2007 will show an increase of nearly 40% from 2006. The numbers will be approaching the level they were at prior to the 2005 Bankruptcy Code changes.

The current state of the economy and real estate market are a major reason for this increase. Many people are in homes that they can’t afford, but also can’t sell. Filing for Bankruptcy gives these people a chance to save their home and get a fresh start. With the economy, seemingly, remaining poor, Bankruptcy is turning into the most viable option for those hampered by unfair mortgages and other unforeseen debts.

Additionally, Congress is looking into to making Bankruptcy even more appealing. There is pending legislation that would allow Bankruptcy judges to alter the terms of one’s mortgage in a Chapter 13, so as to make it more affordable while still being fair for the mortgage lender. If you are in need of financial help or counseling, contact an experienced attorney. They will be able to point you in the right direction to regain control of your financial future.