Experts Expect an Increase in Consumer Bankruptcies in 2012

Dallas – Fort Worth Bankruptcy Lawyers

Although consumer bankruptcies declined last year for the first time since 2006, many experts expect the number of consumer bankruptcies to increase in 2012. Perhaps the most important reason for an expected rise in bankruptcies has to do with the rate of home foreclosures. In 2011, many of the big banks were embroiled in paperwork, legal processes, and court proceedings that slowed down the rate of foreclosure. As a result, more consumers were able to stave off filing for Chapter 7 and Chapter 13 bankruptcy and bankruptcies fell in 2011.

Now that many of these legal hurdles and court proceedings have come to an end, these same banks are positioned to finalize more foreclosures in 2012. Since a fair number of consumers turn to bankruptcy in order to avoid foreclosure, experts believe we’ll see an increase in bankruptcies as a result.

Are You Facing Foreclosure?

In our troubled economy, job loss or an unexpected illness can put an unbearable strain on a family’s financial situation. If you’re behind on your mortgage or your bank has already threatened to foreclose on your home, filing for bankruptcy can help you avoid foreclosure. While there are income requirements that determine whether or not you’re eligible for Chapter 7, both Chapter 7 and Chapter 13 bankruptcy allow you to wipe out unsecured debt on things like credit cards, medical bills, and certain kinds of loans. And, once you begin the process of filing for bankruptcy, your creditors and bank are required to stop all collection and foreclosure actions against you.

Get the Financial Relief needed to Regain Financial Stability

Banks aren’t always willing to work with homeowners to avoid foreclosure. In fact, most banks are only too eager to leverage the legal system in their favor in order to foreclose on a home and recover whatever resale value they can in a tough real estate market. If you’re struggling under credit card debt, medical bills, and a mortgage payment, contact Dallas – Fort Worth – Plano Chapter 7 and Chapter 13 bankruptcy attorneys at Leinart Law Firm to learn how we can help you.