American Bankruptcy Institute Announces Half-Year Statistics

Bankruptcy Court In San Diego – Chapter 7 & Chapter 13

The American Bankruptcy Institute has released new figures on the number of people filing for consumer bankruptcy protection and the numbers are a bit disturbing. More people are seeking Chapter 7 and Chapter 13 protection, including the bankruptcy court in San Diego, than last year. In fact, bankruptcy filings are up about 15 percent in the first half of the year than during the first half of 2009. This is the largest number of bankruptcy filings since the Chapter 7 and Chapter 13 laws where changed in 2005.

We are consistently asked why, if the economy is turning around, are the number of bankruptcy filings increasing? This generally goes back to the idea, that we have discussed so many times, that people wait too long to seek Chapter 7 and Chapter 13 protection. Yes, we have seen a crash in the housing market and high unemployment over the past few years, but the effects last much longer than the bottom. People generally do whatever they can to remedy their financial situation before even thinking about walking into the bankruptcy court in San Diego. This is a mistake and could cost you thousands of dollars.

Generally, it will take about two years from the bottom of an economic cycle to see the number of bankruptcies start to decrease. People seek the protection of the bankruptcy court only they have exhausted all of their other debt relief options. We believe this is a mistake. First, if you are not seeking the advice of an experienced bankruptcy lawyer you are probably getting bad advice. Second, if you try other options like debt settlement, loan modifications or short sales, you could be wasting tens of thousands of dollars on schemes that generally don’t work. That is not to say that they might not be a valid option but bankruptcy works 99% of the time. It is important to consider bankruptcy first and those other options after a Chapter 7 or Chapter 13 has been ruled out.

At the Law Office of Harold D. Thompson, we will use our 35 years of bankruptcy experience to get you out of your financial hole. We are San Diego bankruptcy attorneys that will fight for your rights. Call our office today at 619.615.0767 for free confidential consultation or visit our other websites at San Diego Bankruptcy Attorney, Orange County Bankruptcy Lawyer or Riverside Bankruptcy Attorney for more information.