According to the American Bankruptcy Institute, more Americans filed bankruptcy in July than in the last three months when trends had those filings falling. This reverse in trends seems to be a highlight of the continuing financial struggles most consumers have been seeing over the last few years.
With a 9% increase in personal bankruptcy claims in July, over June, many are seeing the downfall of access to credit pushing these rates higher than they should be. Not being able to find new credit sources means more people will have a hard time repaying their current debt, especially with the current recession still moving onward.
Even with the bankruptcy overhaul, it seems that personal filings are going to reach record highs not seen since the mid 2000’s. Many people do not think the overhaul would be of any kind of effect, but the filings for 2006 dropped dramatically once the plan was put into effect.
Unfortunately, since 2006 there has been an ever increasing amount of people filing for bankruptcy, and it doesn’t seem to be slowing down too much. If things keep going this way, there may be no end to the amount of people filing for bankruptcy.