Re: Bankruptcy Filings Rise

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On 3/28/06, FordhamGrad wrote:
> Apparently, filings are starting to rise again.
> Miraculously, people have not stopped going broke.

I think the reality is that with the new law people are more
likely to file in a pinch. Under the old law there was no
urgency. File today, file tommorrow, file a year from now,
it didn't really matter.

Now, because of means test, people are going to have limited
windows of opportunity and rather than risk it will file.
Unemployment, injury, underemployment, etc. are now times to
file. No point in waiting to see what might develop. You
must file NOW, because the means test will bite you in the
back later if you don't.

Also, I've found that the collections agencies are becoming
even more unreasonable than they were in past because they
think the new law gives them leverage, so they will
literally push people into the Bankruptcy Court.

This new law is garbage but it won't stop Bankruptcy it will
simply shift the tipping points where the BKs happen.