Bankruptcy filings in northern cities and suburbs are skyrocketing, as large debts force Illinoisans to file for Chapter 7 and Chapter 13 protection in greater and greater numbers.
The first and second quarters of 2010 saw exponential growth in the number of consumer bankruptcy filings. There was a 29% increase in the number of Chapter 7 filings and a 16% increase in the number of Chapter 13 filings, compared to the first and second quarters of the previous year.
The increased amount of debt that consumers take on has made keeping homes during tough economic times more difficult, according to the Daily Herald.
In the past, someone who was laid off would seek bankruptcy protection and then promise to make monthly payments on their mortgage. But due to increased debt, consumers are having a tough time meeting any large financial obligations.