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Chicago Consumer Bankruptcy Law Firm Experiences 44% Drop In Bankruptcy InquiriesSince Law Change
Many debtors believe that the option to file for bankruptcy has been eliminated bythe sweeping reform that became effective 10/17/05. The confusion is partly causedby bankruptcy lawyers who have been touting for the past two years on television,radio and print that "time was running out' to file bankruptcy.
David Siegel, an established Chicago bankruptcy attorney, states "it could takeanywhere from six months to one year before bankruptcy filings rise to thepre-reform level". His consumer bankruptcy law firm handled 44% fewer bankruptcyinquiry calls since the law change. There was also a decrease in internet inquiriesat www.bankruptcylawyerschicago.c om. The trend seems to be universal as bankruptcylawyers throughout the country are reporting a drastic loss of new business. Coupled with the new law requiring greater accountability for lawyers who assistdebtors, many lawyers have chosen to concentrate their practice in areas other thanbankruptcy law.
Six factors that can lead to an increase in future bankruptcy filings:Credit card use and abuse. The holiday season will increase credit card usage beyondthe normal monthly credit card charges.Rising mortgage interest rates. As rates increase, the default rates andforeclosure rates increase.Lack of health insurance coverage. The continuing cost of health care is cripplingthose with and without coverage. Divorce, job loss and disability. These unavoidable events will always contributeto a greater debt burden.
It is evident that economic factors that have lead to record bankruptcy filings overthe past five years remain primarily unchanged. Thus, it is not a questions of if,but only a question of when bankruptcy will become a viable option for consumers.
For More Information Contact:Mr. David Siegeldavidmsiegel@hotmail.co mhttp://www.bankruptcylawyers chicago.com
