In spite of the supposedly burgeoning economy, consumer bankruptcy filings have been increasing at an alarming rate. Consumer filings for Chapter 7 bankruptcy were up 14% this February compared to February of last year,

Debt-stress overhang from years of overspending is finally catching up with consumers, according to Samuel Gerdano, American Bankruptcy Institute executive director. This is the main cause behind this increase in Chapter 7 bankruptcy filings.

Recent bankruptcy laws instituted in 2005 and meant to limit the number of Chapter 7 bankruptcy filings and encourage consumers who do file for bankruptcy to do so under Chapter 13 have not succeeded in doing so. Chapter 13 bankruptcy filings have fallen by 3% when compared to last year.

If you need legal counsel in regards to personal finances or are seeking advice when it comes to filing for Chapter 13 or Chapter 7 bankruptcy, contact the New Orleans bankruptcy attorneys of the Law Office of David D. Kervin, Jr., LLC, at 504-599-5906.