Pittsburgh, PA (PRWEB) May 18, 2006
Consumer bankruptcy filings are once again on the rise climbing 50% in each of the first three months of 2005 after seeing a significant drop off in the fourth quarter of 2005.
The cause of the fourth quarter drop off is attributed to the passage of the Federal Bankruptcy Reform Act of 2005 signed into law by President Bush in May of 2005 which resulted in a stampede of case filings as consumers sought to beat the October deadline when the law would go into effect. The resulting after-effect of the consumer activity was a significant drop in case filings through the remainder of the year.
“There was a lot of confusion about whether bankruptcy would go away. People are now starting to realize that bankruptcy is still an option to those under extreme financial duress, said bankruptcy attorney Stephan Nikoloff, of Legal Helpers, a law firm specializing in consumer bankruptcy. “The majority of people who could file for bankruptcy prior to the law change can still file under the new law.”
The reform act was expected to cause a reduction in bankruptcies. Questions remain as to whether this reduction will last.
About Legal Helpers
Pennsylvania bankruptcy attorneys Legal Helpers, the law offices of Macey & Aleman, is a debt relief agency helping people to file for bankruptcy relief under the bankruptcy code. Founded in 1994, Legal Helpers is one of the largest consumer bankruptcy law firms in the United States, employing over sixty attorneys across nineteen states.