Increase in personal bankruptcys

If there was any doubt that tightening up the bankruptcy laws would decrease filings, just look at the figures from last year. With the date of the new law looming in October 2005, two million people filed for bankruptcy in 2005 – a record that saw a 32 percent increase from the previous year. This means about one in fifty households took advantage of the old law that took a kinder eye to running up unpaid bills. After the October 17th date, the filings dropped dramatically.

The Midwest took the “honors” in the bankruptcy race with an over 40 percent increase.

Unfortunately, bankruptcy filings are not always due to profligate spending. Medical bills are a large cause for running in the red.   It is  more difficult to justify not paying your bills these days and is reflected in the filings.