Well Boys and Girls we set a record

[keepmine]

Personal bankruptcies soar to all-time high
Bankruptcies jumped 30% to nearly 2.1 million last year as debtors rushed to file petitions before new restrictions took effect.
March 24, 2006: 4:36 PM EST


NEW YORK (CNNMoney.com) - The number of Americans filing for bankruptcy jumped 30 percent last year to the highest on record as debtors rushed to file petitions before new restrictions took effect, according to the Administrative Office of the U.S. Courts.

Personal bankruptcies filed in the federal courts totaled 2,078,415 in 2005, up from 1,597,462 petitions filed in 2004, the office said in a statement on its Web site Friday.


It was the largest number of bankruptcy petitions ever filed in any 12-month period in the history of the federal courts, according to the office, which collects information for the federal judiciary.

Bankruptcy filings for the period between Oct. 1 and Dec. 31, 2005, also hit a record high for any quarter, the office said.

The increase was largely in response to the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, which went into effect on Oct. 17, 2005.

Under the new law, it became harder for individuals to file for bankruptcy under Chapter 7, which would let them clear their debts and get what's known as a "fresh start."

The law made it more likely that debtors file under Chapter 13, which requires them to repay at least some of their debts within five years.

In a Chapter 7 bankruptcy, your assets, minus those exempted by your state, are liquidated and given to creditors, and many of your remaining debts are cancelled. Since many Chapter 7 filers don't have assets that qualify for liquidation, credit-card companies and other creditors can get nothing.

In a Chapter 13 bankruptcy, you're put on a repayment plan of up to five years. Any debts not addressed by the repayment plan don't have to be paid.

Of the total number of bankruptcy filings, there were 1.7 million Chapter 7 filings, up 46 percent from 1.1 million in 2004. Chapter 13 filings fell 8 percent.

[aa06a47]

Personal bankruptcies soar to all-time high
Bankruptcies jumped 30% to nearly 2.1 million last year as debtors rushed to file petitions before new restrictions took effect.
March 24, 2006: 4:36 PM EST


NEW YORK (CNNMoney.com) - The number of Americans filing for bankruptcy jumped 30 percent last year to the highest on record as debtors rushed to file petitions before new restrictions took effect, according to the Administrative Office of the U.S. Courts.

Personal bankruptcies filed in the federal courts totaled 2,078,415 in 2005, up from 1,597,462 petitions filed in 2004, the office said in a statement on its Web site Friday.


It was the largest number of bankruptcy petitions ever filed in any 12-month period in the history of the federal courts, according to the office, which collects information for the federal judiciary.

Bankruptcy filings for the period between Oct. 1 and Dec. 31, 2005, also hit a record high for any quarter, the office said.

The increase was largely in response to the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, which went into effect on Oct. 17, 2005.

Under the new law, it became harder for individuals to file for bankruptcy under Chapter 7, which would let them clear their debts and get what's known as a "fresh start."

The law made it more likely that debtors file under Chapter 13, which requires them to repay at least some of their debts within five years.

In a Chapter 7 bankruptcy, your assets, minus those exempted by your state, are liquidated and given to creditors, and many of your remaining debts are cancelled. Since many Chapter 7 filers don't have assets that qualify for liquidation, credit-card companies and other creditors can get nothing.

In a Chapter 13 bankruptcy, you're put on a repayment plan of up to five years. Any debts not addressed by the repayment plan don't have to be paid.

Of the total number of bankruptcy filings, there were 1.7 million Chapter 7 filings, up 46 percent from 1.1 million in 2004. Chapter 13 filings fell 8 percent.

Outstanding that so many received a fresh start in 2005. to those who have!! I think we will be back to pre 10/17 bk filing rates before too long. The new law doesn't prevent people from over spending and being in financial trouble.

I wrote my congress person about the new law (he voted for it). His reply was too many people are using bk as a financial planning tool even though we have went through the largest economic growth cycle ever. However, when I informed him of why the average person files bk, he just wrote and said thanks for my opinion. Our representatives don't have a clue about the average American.

[FilingOnMyOwn]

Well, predatory lenders, I guess thats the way the cookie crumbles

[poorme]

Chuckle, chuckle...kinda reminds me of that Sprint commercial where 'the man' is sticking it to himself!

[FoolAndHisMoney]

Outstanding that so many received a fresh start in 2005. to those who have!! I think we will be back to pre 10/17 bk filing rates before too long. The new law doesn't prevent people from over spending and being in financial trouble.

I wrote my congress person about the new law (he voted for it). His reply was too many people are using bk as a financial planning tool even though we have went through the largest economic growth cycle ever. However, when I informed him of why the average person files bk, he just wrote and said thanks for my opinion. Our representatives don't have a clue about the average American.

By some chance did you happen to ask him why he's allowed to "load up" on debt?

http://www.brillig.com/debt_clock/

[copper2]

Just Don't Get It

In reference to your congressman, most people are not going to "Get It" until they have to stare it in the face. (I was one of those people). One thing I know, money has no favorites, and no loyalty. I read that the attorney who assisted Citibank in their fee deregulation in Washington is remorsing and second-guessing his role. (It's common knowledge now that Citibank's single largest shareholders are Saudi, very interesting). I've read that rates will edge over 30% this year, mortgages with variable interest will start to increase, not to mention normal inflation, etc. This spring, I've had to accept my first pay decrease ever because my employer is competing with companies in Bombay. I know I sound DoomsDay, but if you even read it's all there...I feel very blessed that I had to file. There is no restructuring of predatory lending, or inflation, or interest rates, or outsourcing to protect the typical consumer/worker/legislator. It's that thorny door to freedom that is gone.

[SinkingFast]

They don't get it because they haven't lived it. You are so very right.

Most elected persons are rich folk, relatively speaking. The Clintons and the Carters were among some of the poorest people to ever be in the White House in recent times. Even they didn't get it. Bill and Hillary had never owned their own home. They'd always lived in a house provided by the State. The Carters came from Southern Aristocracy. So even tho they were cash poor, they were legacy rich.

Rich folk don't know what trials and tribulations we face on a daily basis. Senators, Representatives and such, have advantage of great taxpayer funded healthcare. When we have and Emergency Room visit, we have to fork over $300, $500, or more to pay even when we have insurance. They don't. So we flash plastic because that unexpected expense was not a part of our regular spending.

They ride in cars provided by and maintained by the taxpayers. So when the engine blows, they don't cough up the cash to fix it. Another car gets sent, and they are on their merry way. But if the same thing happens to us, we flash plastic because we have to have that car to get to work and that unexpected expense is not a part of our regular monthly spending.

They have HUGE salaries. One arguement I heard once was because they have to maintain 2 residences. One in DC and one in their home state. Why can't they live in Gov't housing?? Like our men and women in uniform do?? We could give them a redecorating budget. Then they'd have no expense for the DC place and they could take a lower salary. There's something wrong with the picture when the people we elect to represent us make more than the average registered voter in their districts.

We don't choose from among the best candidates available to serve our interests in government. We pick amongst those who chose themselves. Because, only the rich can afford to choose to run for public office.

[aa06a47]

Jimmy Carter was actually "bankrupt" when he left office. His blind trust blind sided him so to speak. I do not think he declared bk, just wrote a few books and made millions. Harry S Truman declared bk before he was a politician.

I work in the auto industry. I know people like their foreign cars. We could get in a million debates here, but I say as Ford and GM goes, so does the economy. I do believe Ford and GM gave away too much during the good years, but I hope everybody knows, manufacturing jobs are what built this country. They are the tax base of this economy.

Even the foreign companies who build units here in the US, send there profits back home to Japan, Korea...ect...to do R&D, ....the money doesn't stay here and pay for the good paying R&D jobs.

Giving the auto industry to Japan, China, Korea is a bad mistake. Not only is our Congress doing nothing to protect this last great mfg infrastructure, but the American people proudly proclaim there new BMW, Lexus, ect.

I guess I think Congress don't get it and neither does the American people get it for the most part. Our economy might be growing, but for the most part, it is lower paying jobs. Tell the 30K people who just lost 70K a year in salary from Ford and GM the economy is good. Tell the expected 300000 more in auto support industries that will be downsized that the people really gets it.

I am not proud to be in the position I am in..(filing bk). I'm here though, and glad there is a system available to help.

[Minnymouth]

If a Congressman or a Senator had to live like we do there would lots of suicides among govt. officials ......................
They have no inclinaton of how John Q public lives and struggles every day.............
An oil rich politician who grew up with a oil rich daddy has never "stretched a dollar bill"................

My thoughts,

Minny

[jane taylor]

Amen, Minny!!!!!

[lilgoose]

Article in a recent AARP magazine states that the Senior population is now moving to Mexico to live out their remaining years due to the skyrocketing cost of insurance (yes, even medicare), medications and cost-of-living.

I have also heard, and I apologize as I don't know the whole story, but there is expected to be millions having their homes foreclosed on in the next 5 years due to the flexible loans that some idiot dreamed up!

What is going on is that people are purchasing homes that are, in reality, not affordable if purchased on a conventional loan but are affordable if it is purchased on an interest only loan. So, in 5 to 10 years (depending on the length of the loan itself) the payments are going to skyrocket as the principle was not paid down and only interest was paid. The buyer still has to pay the principle AND the interest on the loan...What was paid previously doesn't go to the interest that will still be mounting.

People are basically paying someone else to "rent the home and the loan" for a period of years. They will have nothing to show for it. I do believe that there are people out there who have actually paid over and above the "interest only payment" and have gotten the principle down some, so hats off to those. But, when the gas bills go up due to cold winter months and the cost of running the car/van/pick-up goes up and the cost of groceries goes up, and the salary and weekly paychecks go down, the less they have to pay towards this loan.

I take back calling the person who dreamed this type of loan up, an idiot. They were actually REALLY SMART and has been laughing all the way to the bank. They are not losing sleep over the interest going up.. ..They are loving it. They have made a FORTUNE off these loans and more than paid for whatever the buyer has had to walk away from. The buyer has to walk away from a house they can't afford, ruin their credit and hang their head low because they couldn't see in the future far enough and didn't ask the "right" questions prior to doing this type of loan. The lender is walking away with a huge smile on their face while they are opening the door to the courthouse so they can get their "investment" back and suck in the next "victim".

I say "We the people.....are very gullable"!

(Yes, we did one of those loans~equity~without being told what it really was....low pymt dangled in front of us was too enticing to pass up....just didn't ask the right question to know that it was interest only pymts and nothing towards the principle. By the time we realized that was the case, it was too late and our pymt was set in stone)

Land of opportunity......as long as you are rich and very "legal paper" smart. Wish I had the "hindsight" in the foresight way....

[GoingDown]

Jimmy Carter was actually "bankrupt" when he left office. His blind trust blind sided him so to speak. I do not think he declared bk, just wrote a few books and made millions. Harry S Truman declared bk before he was a politician.

I work in the auto industry. I know people like their foreign cars. We could get in a million debates here, but I say as Ford and GM goes, so does the economy. I do believe Ford and GM gave away too much during the good years, but I hope everybody knows, manufacturing jobs are what built this country. They are the tax base of this economy.

Even the foreign companies who build units here in the US, send there profits back home to Japan, Korea...ect...to do R&D, ....the money doesn't stay here and pay for the good paying R&D jobs.

Giving the auto industry to Japan, China, Korea is a bad mistake. Not only is our Congress doing nothing to protect this last great mfg infrastructure, but the American people proudly proclaim there new BMW, Lexus, ect.

I guess I think Congress don't get it and neither does the American people get it for the most part. Our economy might be growing, but for the most part, it is lower paying jobs. Tell the 30K people who just lost 70K a year in salary from Ford and GM the economy is good. Tell the expected 300000 more in auto support industries that will be downsized that the people really gets it.

I am not proud to be in the position I am in..(filing bk). I'm here though, and glad there is a system available to help.

Well, I agree with you. We can't build much of an economy delivering pizzas to one another. My only valuable possession is a Chevy pickup truck, and I owe lots of money on it still. But, I never even considered buying a foreign truck. I figured it was a way to try to keep some of the money in this country. But with most things it's already too late. Try going to Wal-Mart, Target, Home Depot or just about any store and try to buy something made in USA. It's disgusting what has happened to our country, and I think at some point this red hot housing market will cool down, and our economy will sink into, perhaps, the deepest, darkest economic recession ever. We don't make anything here anymore, so how can we keep our economy going much longer?

[SinkingFast]

Well, I agree with you. We can't build much of an economy delivering pizzas to one another. My only valuable possession is a Chevy pickup truck, and I owe lots of money on it still. But, I never even considered buying a foreign truck. I figured it was a way to try to keep some of the money in this country. But with most things it's already too late. Try going to Wal-Mart, Target, Home Depot or just about any store and try to buy something made in USA. It's disgusting what has happened to our country, and I think at some point this red hot housing market will cool down, and our economy will sink into, perhaps, the deepest, darkest economic recession ever. We don't make anything here anymore, so how can we keep our economy going much longer?

Dittos on owning American vehicle names. Always have. Always will. Won't find no rice burners in our driveway.

Even tho many of the foreign car companies have production facilities here, the profits still line to pockets of foreign investors.

[FilingOnMyOwn]

Dittos on owning American vehicle names. Always have. Always will. Won't find no rice burners in our driveway.

Right on. To the union wage earning mofos that built my camaro

[USPSA-Shooter]

Dittos on owning American vehicle names. Always have. Always will. Won't find no rice burners in our driveway.

Even tho many of the foreign car companies have production facilities here, the profits still line to pockets of foreign investors.

Oh yeah, my wife drives a Chevy Equinox, you know the Chevy with the engine built in China and shipped here because it's cheaper. I'm not kidding.