Bankruptcies skyrocket in new year

The number of Americans filing for bankruptcy jumped up in February, according to published reports. An average of 3,960 petitions for bankruptcy were filed in February of 2008 according to Automated Access to Court Electronic Records, a company that manages bankruptcy information. The figure represents an 18% rise increase from January, and a 28% bump from February of 2007. Last month also marked the largest number of Bankruptcy filings since Congress made significant revisions to bankruptcy law in 2005, making it more expensive for individuals to file, and limiting protection previously given to the bankrupt. The increase illustrates current financial woes that are spreading from the financial and housing markets to more vulnerable job areas, forcing more and more people to file. The most significant increases in filings for the first two motnhs of 2008 occurred in California, which showed a 33% increase in bankruptcy filings. Maryland was second in this category, registering a 29% rise, followed by Florida, which showed a 26% rise.