The latest numbers from the American Bankruptcy Institute (ABI) tell the whole story. Debt is still a serious problem for American consumers even though many financial experts say the recession is over. Personal bankruptcy filings jumped almost 9 percent in October according to ABI. Business bankruptcy filings also increased by 7 percent. It is expected that totals will reach 1.4 million bankruptcy cases in 2009. This will be the highest number of filings since 2005 when changes to the United States bankruptcy laws made it harder to get complete dissolution of personal debt.
High unemployment rates have left many consumers dealing with credit card debt and personal debts with much less hope of being able to pay the debt down. After exhausting unemployment insurance, using up any savings they might have had, and in some cases trying to sell their homes in a less than seller friendly real estate environment, many consumers have seen bankruptcy as their only real alternative. Some may have been helped by a solid debt consolidation plan but when there is little or no income even this can be difficult.
With news reports telling Americans that the unemployment numbers continue to increase each month and give no forecast as to when their might be a turn-around, hope among average citizens is still low. Â The government and the financial experts may see improvement in the economy, but until Americans are put back to work the recession is still raging. Managing debt takes a back seat when there is no food on the table.
