Consumer, Celebrity Bankruptcies May Hit 1.4 Million

[marmar]

Consumer, Celebrity Bankruptcies May Hit 1.4 Million (Update1)
By Linda Sandler and Andrew M. Harris


Aug. 10 (Bloomberg) -- Consumer bankruptcies show no sign of abating after rising more than a third this year and may hit 1.4 million by Dec. 31 as jobs are lost and loans are harder to get, according to the American Bankruptcy Institute.

More than 126,000 consumers filed for bankruptcy in the U.S. last month, 34 percent more than in July 2008, the ABI said in its latest report on Aug. 4. The increase came after a 36.5 percent rise in personal bankruptcies nationwide in the first six months, to 675,351, according to the ABI research group, which interprets data collected by the National Bankruptcy Research Center.

“Rising unemployment on top of high pre-existing debt burdens is a formula for higher bankruptcies through the end of this year,” ABI Executive Director Samuel Gerdano said in a statement. The group, composed of lawyers, accountants, bankers and judges, is based in Alexandria, Virginia.

Debt problems don’t stop with sub-prime borrowers. Celebrities who filed for bankruptcy in July included movie actor Stephen Baldwin, who sought protection from creditors after lenders began foreclosure procedures against his home. Lenny Dykstra filed for Chapter 11 bankruptcy in a petition that says the former Major League Baseball All-Star owes between $10 million and $50 million. ............(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20603037&sid=au04p.PrHKhA

[Tierra_y_Libertad]

1. Green shoots for bankruptcy lawyers and collection agencies.

[exboyfil]

2. Lenny my old classmate in High School

My one touch with fame.