Bush Bankruptcy

washingtonpost.com — Despite the 2005 passage of a law that made it more difficult and expensive to file for personal bankruptcy, more Americans are choosing bankruptcy over destitution. Filings — including Chapter 7, which wipes out debt, and Chapter 13, which reorganizes it — totaled 822,590 last year, up 38 percent from 2006. The numbers tell the story of a crippled economy, one in which people owe more than they can pay to their creditors. And it's one more disturbing chapter in the subprime mortgage crisis, in which homeowners unable to handle higher interest payments on their adjustable rate mortgages are turning to bankruptcy to avoid foreclosure.