Bankruptcy filings increased 35% from the first half of 2008 to the first half of 2009. According the the American Bankruptcy Institute, 681,217 bankruptcy cases were filed during the first half of 2009, whereas 503,749 bankruptcy cases were filed in the first half of 2008. This marks a continued upward trend in bankruptcy filings from 2005, when Congress passed the new bankruptcy legislation.
So what is driving the increased number of bankruptcy filing? Take your pick: unemployment, foreclosures, student loans, credit card debt, medical bills, etc…
Americans are over-leveraged; we have too much debt. It’s going to take time (not more government intervention) and discipline to remedy this problem.