Sadly, consumer bankruptcies are at the highest level since October of 2005 according to Consumer bankruptcies jump 34%.
Total filings reached 126,434 in July, a 34.3% increase from the same period a year ago and an 8.7% increase over June, according to a report released Tuesday from the the American Bankruptcy Institute.
The number of filings was the highest monthly total since the Bankruptcy Abuse Prevention and Consumer Protection Act went into effect in October 2005.
The two main reasons are job loss and high amounts of debt. According to the article unemployment is higher than it’s been in a long time and those who do have a job are not seeing pay increases.
Job loss coupled with debt and not enough emergency savings don’t mix well together. It may seem like the only option, but there are some steps to consider to avoid bankruptcy.
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About Jason
Jason started blogging in 2009 when he created One Money Design. Since then it has grown into a group of writers with unique personalities and a common goal of helping people on the journey to true financial freedom. Jason is an IT project manager by day, but you’ll find him blogging about personal finance and exploring web entrepreneurship late at night and the early hours of the morning. He’s also actively involved in a financial coaching ministry in his community where he shares principles of biblical stewardship and helps people learn to manage their money wisely. Jason enjoys spending time with his wonderful wife and two awesome children and lives in north Dallas.
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