Orange County consumer bankruptcies continue to rise; small businesses continue to seek bankruptcy protection
The number of people who filed bankruptcy in Orange County increased 40 percent in the first six months of 2010, the Orange County Register reported.
Our Garden Grove bankruptcy lawyers continue to report on the record number of consumers who are filing for Chapter 7 or Chapter 13 bankruptcy protection as a result of the collapsing real estate market and the economic downturn. Speaking with an experienced bankruptcy protection lawyer is one of the best ways to restore financial freedom and recover from job loss, a medical emergency or the crushing weight of consumer debt that can come with an upside down mortgage or unmanageable credit card debt.
The U.S. Bankruptcy Court for the Central District of California, which covers San Bernardino, Riverside, Orange, Los Angeles, Ventura, Santa Barbara and San Luis Obispo counties, reports that 6,500 Orange County businesses and individuals filed for bankruptcy protection between January and July of 2010. That rate is 40.3 percent higher than a year ago.
While the numbers of bankruptcies continue to grow,the rate is slowing. By comparison, the number of filings increased by 77 percent between June 2008 and June 2009. Authorities place the blame for the strain on consumers on a number of factors, including:
- Unemployment: 9.5 percent
- Housing foreclosures: Up 3.8 percent in first half of 2010
- Consumer debt: 2.4 trillion in May.
California small businesses are also leading the nation in the number of bankruptcy filings. Orange County small business bankruptcies represented 8.6 of all filings.
The Shakoori Law Group is dedicated to fighting for consumers in the areas of bankruptcy, debt collection defense and consumer protection. Call today to discuss your rights. (877) 529-2188.