2009 bankruptcy filings expected to set new records

Bankruptcy filings during calendar year 2009 are surging ahead of 2008. They are up 22% over the same period last year, with 950,000 filings this year, compared to 700,000 during the same period in 2008. If the trend continues, the total filings for 2009 are predicted to reach 1,500,000 cases.

The combination of unemployment and the depressed home market are likely to fuel increased filings for a long time, as homes continue to be foreclosed on, and people continue to either lose their jobs, or become forced to take jobs that pay less and have fewer benefits.

By: Michael B. Katz, Esq.