Foreclosures Help Propel Bankruptcies in Many States

BankruptciesForeclosures and unemployment drove the number of bankruptcies filed in 2009 to 1.43 million, up 32 percent from 2008 – making this past year the seventh worst recorded, according to a survey of filings in the nation’s 90 districts.
States hit hardest by foreclosures made up the states with the highest bankruptcy filing increases – including Arizona with a 77 percent increase from 2008; Nevada with 59 percent and California with 58 percent.
The data surveyed by the Associated Press also showed that 116,000 bankruptcies were recorded in December, up 22 percent from December 2008.
It is the highest level of bankruptcy fillings since 2005, when consumers rushed to file before new bankruptcy laws took effect in October of that year. For three years, filings have been rising back toward levels reached early in the decade before Congress overhauled the nation’s bankruptcy laws.
Florida, the state with the second highest foreclosure rate, saw a 28 percent increase in bankruptcies in South Florida, the most populous region with the highest number of foreclosed homes. South Florida recorded 25,966 filings compared with 20,229 in 2008, according to statistics reported by the U.S. Bankruptcy Court’s Southern Division.
The six previous years with a higher number of bankruptcies were 1998 and 2001-2005.

3 thoughts on “Foreclosures Help Propel Bankruptcies in Many States

  • January 5, 2010 at 11:49 am
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    It’s important to offer help to avoid bankruptcies… I believe this is a great way

  • January 5, 2010 at 2:41 pm
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    It is just understandable. If we lose our house is because we have lost almost everything else ( cars, credit cards, etc). When you get foreclosed on, you just want to give up. Bankruptcy is like dying. It also is a new beginning…
    By the way, if you think you can still save your home StopFreclosure.com has a very easy do it yourself loan modification guide. ( http://www.stopfreclosure.com/?diy-obama-loan-mod )

  • January 5, 2010 at 6:05 pm
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    THE FACT IS 90% OF ALL BANKRUPTCY CASES ARE DISMISSED IN THE FIRST 24 MONTHS.
    THE REASON FOR THIS IS THEY DO NOT REDUCE THE AMOUNT OF DEBT OWED.
    YOU HAVE TO RESUME ALL PAYMENTS AT THE SAME RATE PLUS ANY EXTRA MONEY YOU HAVE LEFT OVER IF ANY MUST BE PAYED IN TO THE PLAN. ANY UNEXPECTED EXPENSE
    YOU MIGHT INCURR WILL NOT BE COVERED THUS MISS A PAYMENT TRUSTEE DIMISSES CASE.
    NOW THE GOOD NEWS THRU TOTAL MORTGAGE RESET WE WILL NEGOGIATE WITH THE LENDER TO LOWER YOUR PAYMENT BY LOWERING INTEREST RATE AND GUARANTEE 10% PRINCIPLE REDUCTION AND THRU FREE DEBT SETTLEMENT WE CAN REDUCE YOUR CREDITCARD AND OTHER DEBT 50% AND MORESOMETIMES ELIMINATING INTEREST. IF THIS SOUNDS BETTER THAN THE COURTS CONTROLING YOUR FINANCIAL FUTURE (REMEMBER BANKRUPTCY STAYS ON YOUR CREDIT REPORT FOR UP TO 10 YEARS)
    CONTACT US TODAY REMEMBER TIME IS OF THE ESSENCE
    marydhpg@live.com
    homeownerprotectiongroup.com

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