Posted: Jul 6, 2010 5:46 PM by John Romero
Updated: Jul 6, 2010 8:57 PM
New numbers from the American Bankruptcy Institute show a 14% rise in bankruptcy filings between January and June. That's more than 770,000 new cases nationwide, and it's happening in Southern Colorado. "We were up by the end of May by 66 cases, which is a lot." explains Colorado Springs bankruptcy attorney Stephen Swift, "The sad things is so many Americans are only 2 or 3 payments away from disaster."
Job losses and lack of savings are causing more and more Americans to look into bankruptcy. "It's someone who has something to protect." says Swift, "Their family, their home, their income."
Swift says the biggest problem he's seen with clients is an overabundance of credit card debt. "Some people when they lose their job what they have to fall back on is credit. And they continue to maintain their lifestyle for a period...and they can't pay it all back" he says.
His advice, living below your means. There's always a chance the bad times will come, but with proper planning you can stay ahead of the game. "It makes sense for us to be prepared and to have something set aside so that when those bad times do arrive we have something to fall back on." says Swift. If you are in need of counseling on bankruptcy, Swift says most attorneys will give a free consultation.