Bankruptcy filings climb 34% in August

Bankruptcies surged 34% in August from a year ago, and nearly 538,000 filings were made nationwide in the first eight months of the year - a 48% jump from '06. About 77,000 filings for court protection from creditors were filed by companies and individuals last month, according to Jupiter eSources, which tracks court records. Corporate filings to liquidate or reorganize in Chapter 11 bankruptcy proceedings totaled 4,074 in the January-to-August period, a 21% jump over the first eight months of '06. The August statistics are "early signs of a significant increase in business filings," according to a Jupiter eSources exec. If the pace of all filings continues for the remainder of the year, '07 will re-cord more than 806,000 new bankruptcies, a 37% increase from last year.

They will continue to climb for the next several months but there is little need or reason for that to have happened. Lack of consumer education and proper information is the cause of that unfortunate statistic. Had consumers known that there are usually other much less expensive alternatives to bankruptcy there would have been far less bankruptcies. The better method is through education of the consumers about the Fair Debt Collection Practices Act ( FDCPA ), Fair Credit Reporting Act ( FCRA ) and other consumer protection laws and agressive legal action on the part of consumers to enforce those laws.

Creditwrench teaches people how to avail themselves of the legal remedies needed to keep themselves out of bankruptcy. They are simple, reasonably easy to implement and certainly a lot more affordable. The result also means coming out of the mess with a much better credit rating than results from bankruptcy and at much less cost.

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