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Bankruptcy Returns

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The number of new consumer bankruptcy filings soared by 40% last year topping 800,000. With many homeowners upside down on their mortgages and maxed out on their credit cards the stage is set for even higher figures in 2008. Bankruptcy filings peaked at more than two million in 2005 as new bankruptcy laws went into effect that greatly reduced eligibility to make a Chapter 7 filing. Chapter 13 filings now constituted nearly 40% of all consumer filings.

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