Massachusetts Publication Cites Boston Attorney

Banker and Tradesman, a publication of the Warren Group published their bankruptcy statistics noting that Chapter 7 Personal Bankruptcies were up 33% in 2009. This is not news to readers of this blog or our website.
What is news, however, is that Banker and Tradesman acknowledges that Massachusetts is different. While all states have folks filing bankruptcy following layoffs and business declines, we don’t have the medical bankruptcy rate that other states appear have. Instead we have seen an increase in the number of clients sensitive to huge interest rate hikes by the credit card companies.
What we have seen, I explained to Banker and Tradesman, is an increased number of clients who actually could pay their credit card debt. However, when the creditors unexpectedly increased the interest rates — that pushed them over the edge: they see no way they can ever make the payments. When they file for bankruptcy, they get a fresh start, but they were not headed in that direction before the interest rate increases.
In Canada, a recent article by a bankruptcy trustee, found the same results.