Consumer bankruptcies are expected to rise sharply in 2008, according to The American Bankruptcy Institute's data released Wednesday, that is in line with the National Bankruptcy Research Center data. How do they know, if the actual number of bankruptcvies has fallen in October this year?
Because of the surge in bankruptcies last November, signals that the fallout from the nation's mortgage crisis is far from being contained, and is rapidly spreading.
The fact that 28% more households filled for bankruptcy than comparing to November 2006. Out of the total number of bankruptcies being 71,799 some were made under federal Chapter 13, actually 39.5 percent of them. Fortunately, those people will not lose their homes... yet.
With the impending credit squeeze, it's only a matter of time before the bank credit with its reasonably low rates, become inaccessible to those with poor or bad credit status. And then, the whole foundation of American consumer spending, economy, and the society will suffer.
