Bankruptcy INK

In 2006, Chicago, as well as the rest of the nation, experienced a large decline in the amount of personal bankruptcy filings. The decline was so severe that an inevitable question arose; will bankruptcy filings remain at this level in the future? The answer to this question is a resounding, no! Bankruptcy filings in 2007 have rebounded to near pre-2006 levels. In Chicago, Chapter 7 and 13 filings have increased by more than 25% relative to 2006.

The reasons for the 2006 swoon and 2007 re-emergence of bankruptcy filings are quite clear. In 2005, Chicago saw a record numbers of filings due to changes to the Bankruptcy code. Individuals wanted to file before the changes went into affect. Consequently, there was a lesser amount of individuals that needed to file for bankruptcy in 2006. Moreover, people wanted to see the effects of the new bankruptcy code before filing.

As shown by the 2007 resurgence, the effects of the new code mirror those of the prior code. Bankruptcy is the best option when trying to relieve your financial burdens and move on with your life. The creditor harassment ceases and you will be free to pursue your dreams debt free.

Expect bankruptcy filings to continue to rise steadily over the remainder of 2007. Individuals have seen that the changes to the code have not altered the benefits of filing for bankruptcy. If anything, the changes have helped highlight these benefits.