Posted on 01/11/2006 8:07:30 AM PST by LouAvul
WASHINGTON - The rush of indebted consumers to file bankruptcy before a tough new law took effect pushed personal filings for 2005 to their highest annual level on record — more than 2 million, according to new data.
Significant increases in consumer bankruptcy filings occurred in every region, according to the data released Wednesday by Lundquist Consulting Inc., a financial research firm based in Burlingame, Calif. It tallied 2,043,535 new filings last year, up 31.6 percent from 1,552,967 in 2004 — meaning that one in every 53 households filed bankruptcy petitions, according to the company.
The new law, bringing the most sweeping overhaul of the U.S. Bankruptcy Code in a generation and making it harder to erase debts in bankruptcy, took effect on Oct. 17. In anticipation, personal bankruptcy filings jumped in September to the highest on record. They averaged more than 9,000 a day, up roughly 50 percent from 2004's average daily volume, during the first two weeks of September.
By contrast, Lundquist analysts noted a sharp drop in the number of filings since the Oct. 17 deadline. Within the smaller number overall, a greater proportion were made under Chapter 13 versus Chapter 7 of the code. Nearly 60 percent of filings made after Oct. 17 came under Chapter 13, compared with the usual 30 percent under the old regime, Lundquist said.
(Excerpt) Read more at news.yahoo.com ...
deadbeat alert.
do you mean that Bush allowed some of his cronies to have to take it on the chin?......... /sarcasim
Cost of doing business with deadbeats alert.
Company's that lend at 20% interest to over-extended people take big risk of default. That's why they charge 20%.
I don't really feel sorry for such lenders, really.
They're big boys and knew exactly what they were doing, and they make plenty of money doing it.
AMEN!!!!
The new BR bill stinketh to high heaven.
parsy, who smelt it years ago.
Numbers goosed considerably by rush to get in under the wire before the new BK law went into effect.
I guess the word usury doesn't mean anything.
I did a study of antebellum South Carolina private lenders for whom I could find books, and looked at the "deadbeat" list---they not only kept #s and $s, but had comments like, "refuses to pay," "can't be counted on," "skipped town," and so on---and found that the default rate was about 60% among smaller borrowers, 12% among larger borrowers.
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