Bankruptcy filings are reportedly nearing the record two million that was reached in 2005; however, unlike during that time, many believe that majority of the filings of 2010 are not fraudulent. The bankruptcy filing increase follows a trend of defaults that are also increasing.
According to stats from the S&P/Experian Consumer Credit Default Indices, student loan defaults, home foreclosures and bank card loan defaults all increased in the month of April.
Though bankruptcies are up, experts say that many consumers are still avoiding the process, instead going through their own “informal bankruptcy” where the just stop paying their bills. (USA Today)
