Americans filing for bankruptcy rose nearly 50% in April compared to year ago numbers. At this rate of increase, the number of bankruptcies might match the percentage of Americans declaring bankruptcy before the Bankruptcy Reform Act(PDF) took effect in 2005. This act made it more difficult for Americans to declare bankruptcy under chapter 7 and led to an increase in those declaring bankruptcy under chapter 13. The Executive Director of the American Bankruptcy Institute Samuel J. Gerdano, stated that “We expect consumer bankruptcies to top 1 million new cases this year”.

Discuss your opinions on the bankruptcy reform act in our forum.