Bankruptcy

The rate of bankruptcy filings increased from 2007 to 2008 in many parts of the United States. In fact, by some estimates, the number of people filing for bankruptcy protection in 2008 will reach 1.1 million.

The US housing bubble & it's deflation may be correlated with this increase- especially in the states where housing values increased the fastest like California, Arizona, Nevada, and Florida.

During the last few decades, credit was easier to get than in years past.

Several banks began aggressive credit card marketing campaigns & many consumers took advantage of the easy lines of credit that they were afforded. And, as stated above, the housing market inflated to values that have never been seen before.

As bills start to come due for purchases and the economy began to falter, it's not suprising to see an increase in people filing for bankruptcy protection.

Will this trend continue?

Who knows. However, creditors will feel the increase in bankruptcy filings in the next few years.