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...March, more individuals and businesses filed for bankruptcy than in any month since October 2005, when federal bankruptcy laws were made more restrictive. There were 158,141 U.S. bankruptcy petitions filed last month - a 35% increase over February's figure, according to data compiled by Automated Access to Court Records (AACER). This was a 19% increase over the number in October 2009, the last record-high month...

Author: /time Magazine | Title: Personal Bankruptcies Hit a High and May Keep Rising | 4/5/2010 | See Source »

...many law scholars are not surprised by Americans' mad rush to bankruptcy court. Adjusted for inflation, personal borrowing in the U.S. is 10 times greater than in 1960, according to the Federal Reserve. "Now, consumer credit has dried up," says law professor Robert Lawless, an expert on bankruptcy among sole proprietors and small entrepreneurs at the University of Illinois. "That is why people are ending up in bankruptcy court...

Author: /time Magazine | Title: Personal Bankruptcies Hit a High and May Keep Rising | 4/5/2010 | See Source »

...Diego resident Flores is still unwilling to give up, though a skeptical Judge Bowie says he is inclined to dismiss the case. "Have you run the numbers to see if he can meet the payments on just unemployment?" Bowie asks Flores' attorney, Larissa Lazarus. The attorney informs the court that her client needs 12 months to catch up with his payments, saying the problem is a back-property-tax issue of $908 a month that will be resolved in nine months. From the bench Bowie says, "I can do nine months...

Author: /time Magazine | Title: Personal Bankruptcies Hit a High and May Keep Rising | 4/5/2010 | See Source »

...substantial number of cases before Bowie involve a financial institution asking the court for relief from stay, so they can pursue foreclosure against borrowers like Flores. Lenders represented in the courtroom include JPMorgan Chase Bank, Bank of America, Deutsche Bank Trust, Wells Fargo Bank, US Bank and GMAC Mortgage. When a Chapter 13 bankruptcy is ordered and confirmed, lenders must cease any foreclosure proceedings and the delinquent homeowner must begin making regular mortgage payments. But if the debtor cannot keep up the payments, "sooner or later the court drops the bomb," says attorney James Beshears...

Author: /time Magazine | Title: Personal Bankruptcies Hit a High and May Keep Rising | 4/5/2010 | See Source »

...Thaksin proxy party. As fears grew that Thaksin might be pardoned by his allies and stage a political comeback, the yellow shirts responded by occupying the Prime Minister's office complex for months and hijacking Bangkok's two airports for a week. They only dispersed when a court dissolved the then ruling party as punishment for electoral fraud, allowing an Abhisit-led coalition to form through parliamentary backroom deals. "This is not a government chosen by the people," says Natthawut Saikua, one of the red shirts' top leaders. "Abhisit, get out and return power to the people...

Author: /time Magazine | Title: Thailand: Why the Reds Are in Revolt | 4/5/2010 | See Source »

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