Bankruptcy Filings Are Up

Bankruptcy cases filed in federal courts for fiscal year 2010, the 12-month period ending September 30, totaled 1,596,355. This represents a  13.8 percent increase over the fiscal year 2009 bankruptcy filings of 1,402,816, according to statistics released [November 8, 2010 ]by the Administrative Office of the U.S. Courts." 

What accounts for this increase in bankruptcies? It is certainly apparent to those who are filing: Falling salaries, inability to obtain work, increased credit restrictions and above all the marked drop in values of residences.

Our clients desperately want to keep their homes. They live in their homes; have raised their children in their homes and with declining values, their long-term plans have been shattered. They were convinced that to share in the American Dream you had to own your own home.

If you asked me 10 years ago what a young couple should invest in I would have told you that before you invest in the stock market or make any other type of investment you need to purchase a residence and take advantage of the tremendous appreciation and tax advantages that a home has to offer. Today, that advice is no longer viable.

When it comes to saving your home there are many avenues one can take; however, Chapter 13 bankruptcy is a sure way to force the lenders into dealing with you-even when they steadfastly refuse. Chapter 13 can be filed on the eve of the sale date and the automatic stay will stop the sale.

For more information on utilizing Chapter 13 to keep your home from being sold in foreclosure, contact our office for a free consulation with a Westchester County bankruptcy lawyer.