Bankruptcy Filings Rise As Changes To LawGrow Closer
WEST PALM BEACH, Fla. - (08/23/05) Bankruptcy filings are surging asconsumers seek to beat new rules from the Bankruptcy Reform Actthat go into effect in October. Since President Bush signed thebill into law into April, bankruptcy filings have risen 12%nationally through July, and are up by as much as 22% in someareas. The increase follows a leveling off in bankruptcy filingsand even a slight decline during 2005. Some analysts areattributing the increases in filings to greater advertising bybankruptcy attorneys alerting consumers to the law's change, whichmakes it harder to have debts wiped out and to start fresh. Moreconsumers will now have to seek protection under Chapter 13, whichrequires more debt to be repaid. It is estimated approximately1.8-million people will file for bankruptcy during 2005.