Consumers racing to beat the bankruptcy clock are out of time. Today, the long-awaited new bankruptcy law takes effect – making it more difficult for individuals to file Chapter 7.

Based on preliminary data for the week ending Oct. 15, researchers at Lundquist Consulting estimate there will be more than 200,000 personal bankruptcy filings. That’s nearly triple the number of filings in the week ending Oct. 1, which itself was a record high. Americans filed an average of 30,000 a week in the past four years.

…continue reading the article titled Bankruptcy Filings Soar Ahead of New Law

Debt got you down? You’re not alone. Consumer debt is at an all-time high.

What’s more, record numbers of consumers-nearly 1.5 million in 2001-are filing for bankruptcy. Whether your debt dilemma is the result of an illness, unemployment, or simply overspending, it can seem overwhelming. In your effort to get solvent, be on the alert for advertisements that offer seemingly quick fixes. While the ads pitch the promise of debt relief, they rarely say relief may be spelled b-a-n-k-r-u-p-t-c-y. And although bankruptcy is one option to deal with financial problems, it’s generally considered the option of last resort. The reason: its long-term negative impact on your creditworthiness. A bankruptcy stays on your credit report for 10 years, and can hinder your ability to get credit, a job, insurance, or even a place to live.

The Federal Trade Commission (FTC) cautions consumers to read between the lines when faced with ads in newspapers, magazines or even telephone directories that say:

“Consolidate your bills into one monthly payment without borrowing.”
“STOP credit harassment, foreclosures, repossessions, tax levies and garnishments,”
“Keep Your Property.”
“Wipe out your debts! Consolidate your bills! How? By using the protection and assistance provided by federal law. For once, let the law work for you!”

You’ll find out later that such phrases often involve bankruptcy proceedings, which can hurt your credit and cost you attorneys’ fees.