Personal Bankruptcies Escalating And Automatic Stay Protects You From Creditors
Personal bankruptcies are projected to escalate to 1.6 million new cases according to the American Bankruptcy Institute
. This is the largest number since Congress changed the law in 2005. The 1,538,033 total personal United States bankruptcies filed for the year ended September 30, 2010 represents more than a 14 percent increase over the 1,344,095 cases filed over the same period in 2009, according to the Administrative Office of the United States Courts.Free Bankruptcy Case Evaluations
You can get a free bankruptcy case evaluation by taking advantage of the bankruptcy advisory services available either online or over the telephone in order to get an attorney opinion.
Baby Boomers Are Filing The Most Bankruptcies
Middle aged people file the bulk of bankruptcy petitions, a study cited by the Administrative Office of the United States Courts shows. The median age for bankruptcy petitioners increased from 37.7 years in 1994 to 41.4 years in 2002 to 44.9 years in 2007. About half of all people who filed consumer bankruptcies in 2007 were 45 years old and older, the study found.
Why Are So Many Baby Boomers Struggling?
The study considers several causes of the financial struggle baby boomers face. These include:
debt payments as a percent of family income is rising;
28 percent of all mortgage delinquencies and foreclosures were for persons 50 years and older;
the net worth of the middle aged baby boomers and older folks has declined, most likely attributable to a tremendous loss of equity from the housing crisis and the recent volatility in the stock market which wiped out large portions of their retirement plans and pension programs;
credit card debt of those aged 55 to 64 increased 9 perrcent; between 2001 and 2004 and 50 percent between 2004 and 2007.
the rising health care costs are very likely eating into baby boomer incomes and some baby boomers who are trying to help their adult children survive the recession are probably taking on considerably more debt too.
What remedies Does Bankruptcy Provide?
In addition to the due process which you are guaranteed as a United States citizen, the court in which a bankruptcy is filed issues an automatic stay which is a court order. The automatic stay provides relief by telling creditors that you are hands-off. In other words, once you file bankruptcy and the automatic stay is entered, creditors cannot contact you about your debts through threatening phone calls or other intimidating methods.
Let The Law Work For You
If a creditor does contact you during your bankruptcy period, he or she is in violation of the automatic stay and you may be eligible for a settlement.
Automatic Stays Protect You
The moment you file for bankruptcy, you are protected from your creditors. The automatic stay stops all collection efforts against you and against your property. Creditors must stop calling you and sending letters to you. If a creditor has already sued you, that lawsuit must stop. The automatic stay also prevents creditors from repossessing your property and from foreclosing on your home.
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