Bankruptcy filings predicted on the rise -, South Georgia News, Weather, Sports

Bankruptcy filings predicted on the rise

September 19, 2006

Albany -- Bankruptcy filings in South Georgia have dropped nearly sixty percent since a new federal law took effect last October. But it's predicted they'll soon rise again.

 Bankruptcy lawyer Walter Kelley says that's because people are being trapped by spiraling costs. The Bankruptcy Abuse Prevention Act is credited with lowering filings to below six thousand filings in South Georgia last year. But that trend may not last.

Chapter 12 Trustee Walter Kelley said "Higher interest rates, higher gas prices, layoffs, medical bills, skyrocketing medical bills. And people's wages and incomes have simply not kept up with these spiraling costs. "

Walter Kelley said more people are filing Chapter 7 bankruptcy, which demands some repayment for creditors.


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