According to the report released by the National Bankruptcy Research Center, in January 2009 the number of personal bankruptcy applications has increased by 34% compared to January 2008. Compared with the previous month 's December 2008, the number of applications increased by 4.5%.
There is no doubt that these increases are the result of the current economic crisis. The National Economic Research Bureau (NBER), the US economy, the economy entered a recession in December 2007.
Traditionally the recession has been defined as two quarterly declarations of Gross Domestic Product (GDP), but the NBER's Business Cycle Dating Committee took a more comprehensive approach to eliminate the recession. "Economic recession is a significant decline in economic activity of the economy as a whole over several months, as seen in indicators such as production, employment and real income.
Peak decision of December 2007 in economic activity, December 11, 2008
Staff Justin Barton of San Francisco Chronicle wrote an article saying "Economic hardship leads to bankruptcy boom" on January 13, 2009. He reported that the number of members of the National Consumer Bankruptcy Bar Association (NACBA) increased to 1/3 in 2008, becoming a lawyer of 3,200 people.
Due to the prospect of the bankruptcy reform law in 2005 that came into force on 17th October 2005, bankruptcy applications in 2005 surged more than 2 million cases, filing bankruptcy was far more difficult.
People in poor financial form had a motive to force bankruptcy before new laws were enacted, since they will abolish the bankruptcy insurance system since October 2005.
The Bankruptcy Reform Act of 2005 increased the amount of work required to enforce and mitigate employment qualifications. In addition, the applicant must now take credit counseling and borrower education lessons. In 2004, the number of submissions decreased from 1.625 million in 2003 to 1.56 million.
In 2006, bankruptcy application is expected to crash. Two effects were causing downward pressure on the submission. Firstly, in the absence of reform action, since many of the people waiting for the submission in 2006 had the desire to submit in 2005 to avoid the restrictive new law, secondly, restrictions A new new law just made a lot of people qualified to submit ineligible.
The fact that the lobby of the credit card abolished the bankruptcy reform law is that the savings economy has retreated. Many US citizens are currently eligible for bankruptcy application, but they are undoubtedly fortunate.
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