Personal bankruptcy filings up 30% last year

[deadparrot]

WASHINGTON (AP) — Personal bankruptcies soared 30% to a record high last year as financially strained people rushed to file before new restrictions took effect Oct. 17.

Bankruptcy petitions filed in federal courts totaled 2,039,214 in 2005, up from 1,563,145 in 2004, according to data released Friday by the Administrative Office of the U.S. Courts.

A new law, which brought the most comprehensive revision of the U.S. Bankruptcy Code in a quarter-century, made it more difficult to erase debts in bankruptcy. Before its enactment, the number of bankruptcy filings had been fairly stable.

The law bars those with above-average income from Chapter 7 — where debts can be wiped out entirely — except under special circumstances. Those deemed by a new "means test" to have at least $100 a month left over after paying certain debts and expenses must file instead a 5-year repayment plan under the more restrictive Chapter 13.

http://yahoo.usatoday.com/money/perfi/2006-03-24-personal-bankruptcies_x.htm?csp=1

[atreides1]

1. This Can't be True

Chimpy just said that the economy was great, and that it was part of his record that the Repukes stand on!!!

It's the media just telling about the bad things once again.:)

[DBoon]

2. I think he means "stands on" very literally

As in the wealthy who "stand on" those they subjugate

[sarcasmo]

4. Once again, it's the medias fault.

[mdmc]

3. Every DLC member voted for Bush and this bankruptcy bill

except for Hillary. Hillary Clinton did not vote for this.

[Tempest]

5. The increase was NOT because of the new restrictions

I read a report where filings kept the same pace even after the restrictions went into effect.

[DeepModem Mom]

6. CNNMoney: Personal bankruptcies soar to all-time high

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

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....

http://money.cnn.com/2006/03/24/pf/personal_bankruptcies/index.htm?cnn=yes

[xchrom]

7. another bush failure.

[shenmue]

8. Yeah...

his law is really going to help people.

:eyes:

[llmart]

9. "Republicans have a record to stand on"......

and this is it.

[TomClash]

10. But the economy is going great! nt

[saigon68]

11. It didn't stop Corporations from Busting Unions

In fact the Chimp coddles his corporate criminal friends

[Rex]

12. Economy is soaring!

Let the eagle soooooooar...like shes never soared befoooooooore...... :puke:

[NVMojo]

13. Democrats supported this too