As Corona personal bankruptcy lawyers, we were interested to see a recent report on bankruptcy filings in Orange County for the month of October. According to a Nov. 16 article in the Orange County Register, the U.S. Bankruptcy Court for the Central District of California reports fewer new bankruptcy filings last month than in any other month since February. This may be seen as good news for the struggling Southern California economy, as it represents a decrease in the rate of new filings. However, the article noted, October's 1,568 combined consumer and business filings were still 7.4 percent higher than the number of filings in October of 2009. It's also the largest number of bankruptcy filings on record in the five years since the 2005 bankruptcy law change.
The article suggests that the increase in monthly bankruptcy filings is slowing down from 2008, which saw the biggest gains in the five years since the 2005 law change. That change spiked bankruptcies as filers rushed to file under the old rules. Filings saw a dramatic drop after the new rules took effect, but have risen every year since then, in defiance of predictions made by supporters of the law. They have risen especially sharply since 2008, when the housing crisis took effect. A Foothill Ranch bankruptcy attorney told the Register he sees more middle-class and upper-class bankruptcy filers these days, especially people who own small businesses that folded in the recession. He said he thinks bankruptcy activity will go back down soon, as mortgage lenders start to work seriously with borrowers to prevent foreclosures.
Our Costa Mesa individual bankruptcy attorneys would like to agree, but that has not been the case in our experience. Rather, we've found that mortgage lenders are much more interested in drawing out foreclosures so they can profit off late fees, before ultimately taking the home anyway. In any case, the mortgage crisis is just part of the reason for the large increase in bankruptcy filings. As the article notes, the recession has affected people throughout the financial spectrum, including people whose financial problems stem from a job loss or loss of customers as well as people whose problems are largely mortgage-related. We do agree, however, that the face of bankruptcy is increasingly diverse. These days, bankruptcy filers aren't just people living paycheck to paycheck -- they're people who once had a steady middle-class income, but fell victim to unemployment, slowing business or a major financial catastrophe.
Based in Anaheim, Howard Law PC represents clients throughout California who are considering bankruptcy as a way to handle debts they can no longer handle themselves. We understand that bankruptcy is a major decision and, for many people, a decision that carries a lot of guilt and a social stigma. In fact, bankruptcy is an important decision and certainly not something to be done hastily. However, in our experience as Laguna Beach consumer bankruptcy lawyers, delaying when you know you can't pay your debts on your own is merely putting off the inevitable. To make matters worse, it's possible to harm yourself financially during the delay, by draining savings and other assets that might otherwise be protected from your creditors. Rather than put up with harassing phone calls from creditors for months, you are invited to speak to us confidentially about whether bankruptcy is the right solution for you.
If you're tired of constant unpleasant phone calls from creditors you know you can't pay, you should call Howard Law to learn more about how we can help. To set up a free consultation, contact us through our website or call 1-800-872-5925 today.