"February's bankruptcy spike -- the highest single month since the 2005 (bankruptcy) law changes -- forecasts the start of more to come for the balance of 2008," said Samuel Gerdano, ABI executive director.
"It is probably too early to attribute the current trend to the mortgage crisis. But if it continues -- as it is certainly expected to with adjustable rate mortgages resetting -- it could add to the bankruptcy rate," Gerdano said in an interview.
The institute is forecasting more than 1 million consumer bankruptcies in 2008, compared with about 800,000 in 2007, due mostly to heavy household debt. But the 2008 estimate could go
even higher "if this contagion affecting the home mortgage market continues," Gerdano said.
As things have gotten tougher, people have been loading up on credit cards. Another day, yet another problem.
http://www.cnbc.com/id/23454160
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