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The misconception of simplicity So many businesspeople share the common misconception that filing bankruptcy is nothing special, barely anything more than some forms and a couple of meetings before the tab is cleared. However, this is what people think before they have to file for one. After they do, they realize how deceptive the simplicity […]

A half-dozen years ago, bankers were testifying to Congress about the need for a sweeping reform of bankruptcy law to make it more difficult for Americans to file for personal bankruptcy. They got what they wanted in 2005 with the Bankruptcy Abuse Prevention and Consumer Protection Act.

Creditors can use various methods to collect on a debt. One of the most effective collection methods is wage garnishment. By garnishing a debtor’s wages, the creditor does not have to be concerned with the debtor’s willingness to send payments or pay the debt in full. The money is simply taken directly out of the debtor’s paychecks.

The struggling economy, housing crisis and high national unemployment rate are causing Americans in increasing numbers to seek help from their mounting debt in bankruptcy courts across the nation. With more than 6,000 new filings for bankruptcy protection each day, the numbers are on track to reach more than 1.4 million total filings for 2009 up from 1.1 total filings last year.