FAQ: Why Are Bankruptcies On The Rise?

Susanne M. Robicsek
Charlotte NC Bankruptcy Attorney
(704) 377-0776

NC Bankruptcy Lawyer in Charlotte North Carolina for Chapter 7 / Chapter 13

Why Are Bankruptcies On The Rise?

Some people do everything right and still have to seek protection in the bankruptcy laws. But the biggest factor I have seen that leads to filing bankruptcy is the easy availability of credit. For the last twenty years, I have seen credit card use increase as creditors made it easier and easier to get credit, and higher credit amounts.

In more recent years, mortgage problems have helped drive the increase in debt loads and lead to bankruptcy. Some people are in mortgage payments that are just too high for their income, or their pay may have dropped since they bought the house. Some people have adjustable rate mortgages (A.R.M.) that they thought they would be able to refinance before the rates went up - and then they couldn't. Many people cover their living expenses with credit cards since their income is going to pay the higher mortgage.

Other people just get so deep in debt that they don't know how to get out. It used to be hard to get credit cards, and there were limits to how much people could get. Now the only guideline seems to be whether payments are made on time, even if payments are made using other cards. I am astonished by the amount of credit card debt that my clients are coming in with these days, and I don't think that the balances are from any more purchases than the clients I saw twenty years ago. I think that they are just able to avoid seeking help, or they don't know they are in trouble, because there is always another card to help manage the monthly payments.

Rather than seek help early, people borrow getting deeper in debt until the only option available is bankruptcy.

The Law Office of Susanne M. Robicsek
1701 Scott Avenue Charlotte North Carolina 28203
phone:704 / 377-0776
fax: 704 / 377-0775

DISCLAIMER: This message is intended as a general discussion of legal issues and not as a statement of fact, legal advice or a legal opinion; Personal opinions may also be expressed. No attorney-client relationship is created by this message; Do not act or rely upon law-related information in this communication without seeking the advice of an attorney licensed to practice in the relevant area.
The Law Office of Susanne M. Robicsek is
a Federally Designated Debt Relief Agency
under the Bankruptcy Code.
I file bankruptcy cases for people in financial need,
and have been doing so since 1989.

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