Consumer Credit: Summer of Bankruptcy

From the Seattle Post-Intelligencer

We predict a stormy season ahead. Call it the “Summer of Bankruptcy.”

Between April and October, an increasing number of Americans will file for bankruptcy protection. This action is inevitable because a harsher bankruptcy code begins Oct. 17. That law takes effect at a time when credit is becoming more expensive for ordinary consumers.

April reflected this trend-to-be. According to CardWeb.com, there was a 16 percent increase in bankruptcy filings, up sharply after a steady two-year decline. We expect more bankruptcies ahead because consumers are carrying unmanageable debt loads.

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